Cincinnati  Off  (kMNCiii 
Proceedings 

And  Weu^f^^tomNMcE. 


Board  of  Public  Improvements 


AND 


City  Council 


REFERENCE 


The  Queen  City  Natural  Gtm&nd  Fuel 
Company's  Ordinance 


INCLUDING  THE  ARGUMENT  OF 


A.  HlCtCENLOOPER- 


iEKOKK  THE 


COMMITTEE   ON  LIGHT 


SEPTEMBER  B,  1890. 


Reprint  from  the  Commercial  Gazette 


CINCINNATI 

robertTlarke  &  CO. 
1890 


t  3  to  2. 

— — 

IDE  FAMOUS  FOUR  TO  ORE  VOTE  ASPHYXIATED, 


A  Fifty  Cents  a  Thousand  Gas  Ordinance 
Rushed  Through  the  B.  P.  I. 


LITTLE  KING  KERPER  KICKS  OUT  OF  THE  TRACES. 
All  Heedless  of  the  Ring  and  Party  Whip. 


SOME  SPICY  TALK   IN  WHICH    REEMELIN  SHOWS 
HIS  SHAPELY  HANDS. 


THE    PROCESSION   TAKEN    UP    PROMPTLY  BY 

COUNCIL. 


A  Strong  Talk  from  General  Hiekenlooper. 


The  Ordinance  of  No  Value  to  the  City,  and  a  Piratical 
Instrument  on  Its  Face. 


The  developments  in  the  Board  of  Public  Improvements  yesterday 
confirmed  the  rumors  of  a  few  days  preceding  that  a  scheme  of  some 
kind  or  other  was  about  to  be  sprung  in  that  Board  in  co-operation 
with  a  hurried  push  in  the  City  Council.  Before  the  Board  was  called 
to  order  Messrs.  Reemelin,  Donham,  and  Montgomery  had  whispered 
conferences.  That  is,  only  two  of  them  conferred  together  at  a  time. 
The  confabs  appeared  to  be  of  the  most  amiable  and  agreeable 
character. 

Bentley  C.  Matthews,  Esq.,  came  early.    So  did  Lewey  Bernard. 


President  Reemelin  hurried  the  regular  business  through  by  having 
the  most  important  matters  "referred."  It  is  an  easy  way  of  tem- 
porarily disposing  of  a  thing.  It  is  like  backing  out  a  collector  by 
telling  him  to  call  "next  week." 

Even  Judge  Robertson  and  Attorney  Bruce  were  kept  at  bay,  and 
the  red-hot  issue  was  declared  on  by  President  Reemelin's  introduc- 
tion of  "Mr.  Matthews,  gentlemen,  who  has  a  little  matter  of  some 
importance  to  present  for  your  consideration."  And  Mr.  Matthews- 
presented  it  in  the  form  of  a  type-written  ordinance,  which,  he  said, 
was  in  substance  the  same  as  the  Natural  Gas  and  Fuel  Company's 
ordinance  passed  September,  1889.  Its  title  is  "An  ordinance  to 
amend  Section  1  of  an  ordinance  entitled  'An  ordinance  to  authorize 
the  Queen  City  Natural  Gas  and  Fuel  Company  to  lay  pipes  in  the 
streets,  alleys,  lanes,  commons,  and  public  places  for  certain  purposes, 
and  under  the  terms  and  conditions  therein  stated,  passed  September 
14,  1889.'  " 

It  grants  permission  to  the  Queen  City  Natural  Gas  and  Fuel  Com- 
pany to  lay  pipes,  etc. ,  for  the  term  of  twenty-five  years.  The  name 
and  words,  "  The  Queen  City  Natural  Gas  and  Fuel  Company,"  as 
used  in  this  ordinance,  shall  apply  to  and  include  said  corporation, 
its  successors,  etc.;  the  words  "fuel  gas"  are  intended  to  mean  and 
embrace  natural  gas  or  gas  manufactured  for  heating  and  power  pur- 
poses. "Board  of  Improvements"  is  substituted  for  "Board  of 
Public  Affairs  "  and  "  Chief  Engineer,"  as  used  herein,  shall  include 
its  and  his  official  successors,  and  whenever  said  name  is  mentioned, 
the  same  shall  be  construed  accordingly. 

The  amendment  ordinance  really  repeals  the  natural  gas  ordinance- 
passed  for  the  Queen  City  Company,  and  substitutes  for  natural  gas 
at  fifteen  cents  per  thousand  cubic  feet,  fuel  gas  at  fifty  cents  per 
thousand  cubic  feet.    The  franchise  is  for  twenty-five  years. 

The  grant  asked  for  pretends  not  to  be  exclusive.  An  obligation 
is  to  produce  at  least  twenty  million  cubic  feet  of  fuel  gas  daily,  or 
every  twenty-four  hours. 

After  the  ordinance  was  read,  Mr.  Ellison  moved  to  refer  it  to  the  Com- 
mittee on  Streets,  for  report. 

Attorney  Matthews  desired  "one  word."  He  desired  prompt  action,  be- 
cause he  did  not  know  how  many  meetings  of  Council  there  are  between  this 
time  and  the  13th  of  September,  when  the  original  ordinance  expires  by  lim- 
itation of  conditions.  He  hoped,  therefore,  that  this  Board  would  act  at  once, 
He  had  something  to  say  about  a  rival  concern  producing  delays  (the  Gas 
Company),  and  trusted  to  the  practical  good  sense  of  this  Board  for  the  bet- 


3 


ter  interests  of  the  people  in  a  matter  so  vital  as  cheap  gas  for  fuel,  power, 
etc. 

Mr.  Kerper  moved  to  amend  the  motion  of  Mr.  Ellison  by  adding  the  Com- 
mittee on  Light.    Mr.  Ellison  accepted. 

Mr.  Donham  moved  as  a  substitute  to  approve  and  forward  to  Council. 

Mr.  Kerper  hoped  that  they  would  not  do  that.  It  looked  too  much  like 
forcing  the  thing  through  without  proper  consideration.  It  would  not  look 
well. 

Mr.  Reemelin  did  not  care  any  thing  about  that. 

Mr.  Kerper  then  asked  for  delay  implied  in  this  motion,  to  compare  the 
amended  with  the  original  ordinance. 

Mr.  Reemelin  had  compared  them.  He  had  a  copy  of  the  original  before 
him  as  the  amended  was  read. 

"Yes,"  replied  Mr.  Kerper,  "but  I  did  not,  and  therefore  I  hope  that  this 
Board  will  not  act  hastily.  Such  a  thing  as  this  forcing  through  has  not  yet 
been  done  by  this  Board.  I  want  time  to  consider  the  matter,  I  assure  you. 
Then  if  you  gentlemen  have  your  minds  made  up  you  can  act  accordingly." 

Mr.  Reemelin  again  asserted  that  he  had  compared  the  ordinances,  and  the 
amended  ordinance  was  straight  and  right.  If  the  original  ordinance,  as 
passed  by  their  predecessors  a  year  ago,  and  passed  by  Council,  was  right 
then,  this  ordinance  to  amend  it  is  right  now,  and  for  that  reason  alone  he 
would  vote  to  recommend  it.  What  Council  sees  fit  to  do,  he  could  not  foresee, 
but  if  it  came  back  for  concurrence  to  this  Board  he  would  vote  for  it. 

Mr.  Kerper  reminded  him  that  this  is  a  different,  a  new  ordinance  under 
cover  of  an  amendment.  The  first  ordinance  proposed  to  furnish  natural  gas 
at  15  cents.  This  ordinance  is  fuel  gas  at  50  cents,  "and  you  can't  now  an- 
swer me  what  fuel  gas  costs  in  any  other  place,  nor  what  it  costs  anywhere."' 

Mr.  Reemelin  said  that  that  sounded  a  good  deal  like  the  Gas  Company's 
talk. 

Mr.  Kerper  replied  that  it  was  not  Gas  Company's  talk,  but  any  common 
sense  business  man's  talk.  He  did  not  care  any  thing,  he  said,  about  the  Gas 
Company  in  this  matter.  He  was  there  to  exercise  his  intelligence  on  all 
matters  of  public  concern,  and  he  proposed  to  do  it. 

Mr.  Donham  observed  that  the  ordinance  could  not  go  to  Council  to-day 
if  longer  delayed. 

Nevertheless,  said  Mr.  Kerper,  I  want  time  for  consideration. 

Mr.  Ellison— So  do  I. 

President  Reemelin  wanted  it  distinctly  understood  that  he  wanted  the 
thing  settled  to-day.  He  would  vote  for  it  every  time,  because  every  time  an 
ordinance  comes  up  to  do  any  thing  for  the  city,  the  Gas  Company  gets  it  de- 
layed so  as  to  come  in  and  knock  it  out. 

"  Gentlemen,  do  not  rush  this  thing  through.  Just  give  us  a  little  time  for 
consideration,"  rejoined  Mr.  Kerper. 

President  Reemelin  directed  the  clerk  to  call  the  roll  on  Donham's  substi- 
tute, which  was  passed  as  a  matter  of  course  by  the  votes  of  Donham,  Mont- 
gomery and  Reemelin.    Messrs.  Kerper  and  Ellison  voted  in  the  negative. 

It  is  all  wrong,  gentlemen,  remarked  Mr.  Kerper,  and  that  he  was  glad  he 
had  no  hand  in  it. 


4 


Mr.  Reemelin  colored  up  instantly.  His  eyes  scintillated  with  anger  through 
his  hard  ruhber  eyeglasses  as  he  retorted,  "  My  hands  are  just  as  clean  as 
yours."  And  extending  those  clean  hands  over  his  end  of  the  table  for  all  to 
examine,  he  added:  k'  If  you  have  any  charges  to  prefer  about  this  matter,  I'm 

ready." 

Mr.  Kerper,  who  kept  his  temper  all  the  time,  quietly  looking  at  the  head 
man  of  the  triumvirate,  replied  that  he  would  take  his  time  for  that.  All  he 
had  to  say  was  that  he  was  sorry  that  his  colleagues  of  this  Board  had  done 
the  wrong  of  rushing  this  thing  as  they  had. 

After  the  little  tempest  had  spent  itself,  Mr.  Reemelin  went  around  justify- 
ing his  action  by  saying  that  any  enterprise  for  the  benefit  of  this  city,  with 
such  moneyed  men  as  Harry  Morehead  back  of  it,  he  was  for  without  any 
hesitation  or  qualification. 

IN  CITY  COUNCIL. 

The  New  Gas  Ordinance  Bobs  Up  Suddenly — Other  Busi- 
ness. 

There  were  forty  members  of  the  City  Council  present  at  roll-call 
for  the  adjourned  meeting  yesterday  afternoon,  with  President  Bader 
in  the  chair.  It  being  an  adjourned  meeting,  business  was  resumed 
where  it  was  left  off  at  the  regular  meeting  of  Friday  last. 

And  now  came  the  new  gas  ordinance,  under  reports  from  city  offi- 
cers. It  was  the  ordinance  put  through  the  Board  of  Public  Improve- 
ments at  the  forenoon  session  by  the  votes  of  Messrs.  Reemelin, 
Montgomery,  and  Donham.  It  did  not  create  any  surprise,  as  Mr. 
Reemelin  had  been  around  among  the  members  explaining  the  little 
matter,  but  the  Councilmen  gave  the  reading  a  tolerable  attention. 

Lewy  Bernard  occupied  a  seat  back  of  the  members,  and  steered 
several  of  an  inquiring  turn  of  mind  over  to  where  the  President  of 
the  Board  of  Public  Improvements  sat,  up  front,  for  enlightenment. 

When  the  ordinance  was  read,  Mr.  Legner  moved  to  refer  it  to  the  Com- 
mittee on  Light,  with  instructions  to  report  at  next  regular  meeting. 

Mr.  Finke  moved  to  amend  by  having  it  printed  and  copies  sent  to  members. 
Mr.  Legner  accepted  this. 

Mr.  Deinst  moved  to  amend  by  including  the  Committee  on  Law  and  Con- 
tracts.   This  was  seconded  by  Mr.  Mueller. 

Mr.  Mullen  moved  to  amend  by  requiring  the  committee  to  report  at  "next 
meeting  " — leaving  next  regular  out. 

Mr.  Abbihl  observed  that  it  ought  to  be  referred  to  the  Committee  on 
Smoke,  for  there  was  no  light  in  the  ordinance.    It  did  not  mean  light. 

Mr.  Deinst  pressed  his  motion  because  there  are  matters  in  the  ordinance 
which  should  be  considered  from  a  legal  point  of  view,  but  he  was  voted  down 
by  a  roaring  chorus  of  nays. 


5 


Mr.  Legner's  motion,  as  amended,  was  carried  by  a  similar  viva  voce  vote. 
A  feeble  effort  to  go  on  with  calendar  business  proved  ineffectual,  and  the 
Board  broke  up  upon  a  motion  to  adjourn  that  was  opposed,  but  was  declared 
carried  by  the  Chairman. 


A  RAIDING  ORDINANCE. 

Worth  from  $50,000  to  $500,000  as  Such — General  Hick- 
enlooper  Talks  from  the  Shoulder. 

General  Andrew  Ilickenlooper,  President  of  the  Gas  Company,  was 
asked: 

"  I  suppose  you  have  been  advised  of  the  sudden  action  of  the  B.  P.  I.  in 
granting  an  ordinance  for  a  new  gas  company  this  morning?" 

"  Yes,  I  heard  a  dav  or  two  ago  that  the  bargain  had  been  closed,  and  it 
was  to  be  put  through  this  morning,  but  I  doubted  if  any  Board  that  ever  ex- 
isted would  have  the  nerve  to  so  act  on  such  an  important  matter,  particularly 
after  the  character  of  the  old  ordinance  which  this  purports  to  amend  had 
been  so  thoroughly  exposed." 

"  What  was  its  character,  and  in  what  respect  has  it  been  amended  ?" 

"It  was  an  ordinance  for  a  new  gas  franchise  disguised  by  a  cloak  of  natu- 
ral gas,  killed  by  the  insertion  of  a  clause  that  compelled  them  to  first  lay  a 
main  from  the  gas  fields  before  tearing  up  the  streets.  As  they  never  had  the 
slightest  intention  of  supplying  natural  gas,  no  action  was  taken  under  it. 
There  was  also  another  clause  in  the  original — that  unless  they  commenced 
work  within  one  year,  the  ordinance  would  be  inoperative.  This  limit  will 
expire  in  a  few  days,  so  they  had  to  take  this  snap  judgment.  This  amend- 
ment simply  throws  off  the  disguise,  and  cuts  out  all  reference  to  natural  gas, 
but,  to  preserve  a  slight  disguise,  the  name  of  fuel  gas  is  substituted." 
4  "Well,  might  it  not  be  their  intention  to  furnish  fuel  gas?" 

"No,  sir,  it  is  not;  there  is  no  such  thing  as  distributive  or  distinctive  'fuel 
gas.'  This  name  is  adopted  simply  to  mislead  the  public;  the  whole  purpose 
and  object  is  to  obtain  a  raiding  franchise  which  is  a  merchantable  article. 
The  old  ordinance  was  offered  to  us  time  and  again,  and  it  was  also  peddled 
around  in  the  east,  but  the  requirement  that  they  should  first  lay  a  main  from 
the  gas  fields  before  they  entered  upon  the  streets  rendered  it  valueless  as  a 
raiding  instrument." 

"  May  not  some  people  think  that  an  opposition  company  would  be  a 
benefit?" 

"No  intelligent  person;  that  theory  has  been  long  since  exploded,  and  only 
requires  intelligent  consideration  and  discussion  to  convince  the  public  that 
there  can  be  no  economy  or  reduction  in  prices  where  it  is  required  to  invent 
double  the  capital  necessary  to  do  the  same  work." 

"  But  they  are  limited  to  a  charge  of  fifty  cents?" 

"  Oh,  that  is  another  evidence  of  the  deception;  that  is  to  hold  only  for  five 
years,  after  which  they  can  charge  any  price  they  may  have  named.    For  this* 


6 


period  they  would  not  attempt  to  make  or  distribute  gas,  but  at  the  end  of  that 
time  they  would  have  a  valuable  franchise." 
"Is  such  a  franchise  valuable?" 

"  I  should  say  so.  The  fellows  who  have  it  put  through  would  probably 
be  able  to  sell  it  to  a  coterie  of  eastern  professional  gas-raiders  for  half  a 
million. " 

"  So,  then,  you  think  there  is  money  in  the  scheme  ?  " 

"  Well,  I  should  say  so.  They  valued  the  old  defective  grant  at  $50,000. 
So  I  don't  know  whal  price  they  will  hope  to  get  for  a  more  perfect  one." 

"Is  there  any  possible  advantage  in  a  duplication  of  capital  in  such  an  un- 
dertaking ?  " 

"  None  in  the  world.  There  is  no  intelligent  community  on  earth  that  does 
not  now  7-ealize  that  the  greatest  economy  is  secured  by  consolidation  and  not 
by  duplication.'' 

"  Nowhere  has  any  city  such  an  advantage  in  cheap  gas  as  Cincinnati.  Not 
only  is  the  company  well  managed  and  with  the  greatest  possible  economy, 
but  under  the  present  law  the  city  itself  fixes  the  price  at  which  we  must  sell 
our  gas,  so,  that  while  the  company  is  itself  operated  by  private  capital,  and 
with  the  hope  of  gain  as  an  incentive  to  economy,  the  people  get  gas  at  just 
what  tbey  themselves  say  it  is  worth.  I  do  not  see  how  there  could  be  any 
more  fortunate  arrangement  for  the  public  than  this." 

"Is  there  any  city  in  this  country  where  there  is  actual  competition  in  the 
sale  of  gas  ?  " 

"  No,  sir;  nor  in  the  world.  There  have  been  instances  of  short-lived  raids, 
but  in  no  single  instance  has  it  proved  advantageous  to  the  public,  for.  as  must 
be  the  inevitable  conclusion  after  a  short  contest,  they  combine  and  exact  a 
price  that  will  bring  a  fair  return  on  the  increased  investment." 

"  What  will  Council  do  in  the  matter?" 

"  I  can  not  say.  There  are  some  very  reputable  men  in  that  body,  and  I  can 
not  but  think  that  there  will  be  no  such  indecent  haste  manifested  as  there 
by  the  B.  P.  I.  in  putting  through  a  measure  of  such  importance  to  our  cit- 
izens, but  that  a  fair  and  reasonable  opportunity  will  be  given  the  public  to 
consider  the  probable  effect  of  such  action." 

"  Have  you  any  idea  who  are  the  promoters  of  the  scheme?" 

"Not  the  slightest;  even  Avhen  the  original  scheme  was  put  through,  the 
most  searching  inquiry  failed  to  disclose  its  backers.  I  know  that  then  great 
freedom  was  taken  with  the  names  of  prominent  men  who,  it  was  alleged, 
were  interested  in  it,  but  who,  in  fact,  knew  nothing  about  it.  It  is,  in  my 
judgment,  a  purely  money  making  and  speculative  scheme." 

"May  not  your  interests  warp  your  judgment  in  the  matter?" 

"  Some  may  think  so,  but  the  Cincinnati  public  will  bear  testimony  to  the 
fact  that  I  have  never  made  a  statement  calculated  to  mislead,  or  that  was  not 
subsequently  proven  true  in  every  particular.  Why,  when  these  fellows  first 
inaugurated  this  scheme,  under  the  natural  gas  disguise,  they  had  the  public 
so  worked  up  that  nearly  every  man,  woman  and  child  in  the  city  thought 
we  would  have  a  flow  of  natural  gas  at  our  corporation  line  within  the  next 
thirty  days.  I  was  severely  criticised  for  asserting  that  they  never  had  the 
slightest  idea  of  supplying  an  ounce  of  natural  gas.    Now  these  same  fellows 


have  swung  off  on  to  so-called  'fuel  gas.'  It  is  simply  a  delusion  and  a  snare, 
and  nothing  in  the  world  but  ;i  bold  boodle  scheme,  which  it  is  the  duty  of 
everv  honest  citizen  to  denounce." 


THE  COMMITTEE  ON  LIGHT. 

Thursday,  August  28,  1890.  The  Committee  on  Light  of  the  City 
Council  had  a  meeting,  called  by  Messrs.  Schweninger,  Heyn,  and 
Mullen,  to  consider  the  proposed  amendment  to  the  Queen  City  Nat- 
ural Gas  and  Fuel  Company.  All  the  members,  consisting  of  Messrs. 
Schweninger,  Mullen,  Heyn,  Tom  McDonough,  Berger,  Spiegel,  and 
Schlotman,  were  present,  and  Mr.  Spiegel  was  in  the  chair.  Lawyer 
I.  M.  Jordan,  General  Hickenlooper,  and  several  members  of  the 
City  Council  outside  the  Light  Committee  were  also  present. 

Mr.  Schlotman  was  chosen  secretary. 

The  business  was  opened  by  the  secretary  reading  the  ordinance  as  ■ 
it  had  been  amended. 


At  the  conclusion  of  the  reading,  Mr.  Jordan  said:  At  some  stage  of 
these  proceedings,  when  convenient  to  you,  I  would  like  to  present  a  little 
matter  in  connection  with  this  ordinance. 

Mr.  Spiegel.  Is  there  any  body  here  representing  the  Queen  City  Com- 
pany?   Are  you  representing  them,  Mr.  Jordan  ? 

Mr.  Jordan.  No,  sir;  I  am  representing  some  tax -pavers  who  are  op- 
posed to  this  amendment. 

Mr.  Spiegel.  Is  there  any  body  here  representing  this  company  asking 
this  franchise,  any  attorney  who  appeared  before  the  Board  of  Public  Im- 
provements ? 

Mr.  Mullen.    General  Hickenlooper  is  here. 

Mr.  Spiegel.  There  being  no  body  here  for  the  Queen  City  Company,  I 
see  no  objection  to  the  other  side  being  heard  at  once.  Go  ahead,  Mr. 
Jordan. 

Mr.  Jordan.  Mr.  Chairman  and  gentlemen  of  the  Committee,  I  appear 
before  you  on  behalf  of  a  number  of  leading  citizens  and  tax-pavers  not  for 
the  purpose  of  entering  into  a  discussion  of  the  merits  of  this  ordinance  at 
the  present  time,  but  for  the  purpose  of  asking  that  you  give  us  time  and  op- 
portunity to  be  heard  before  this  Committee  for  the  purpose  of  making  a  suf- 
ficient presentation  of  our  objections  to  this  ordinance.  It  may  be  not  im- 
proper that  I  should  state  to  the  Committee  that  I  am  at  the  present  time 
engaged  in  a  case  before  the  Probate  Court  relating  to  the  condemnation  of 
property  in  connection  with  the  new  bridge  across  the  river.  I  shall  be  en- 
gaged in  that  continuously  until  to-morrow  week%  If  it  is  not  asking  too 
much  of  the  Committee.  I  should  like  to  have  the  further  consideration  of 
this  subject  postponed  until  that  time.    In  connection  with  this,  I  would  say 


s 


that  about  a  year  ago  an  ordinance  was  passed  that  was  to  give  to  the  city 
natural  gas.  It  was  to  have  the  supply  at  a  very  early  period  and  at  very 
cheap  rates.  That  ordinance  was  discussed  in  the  newspapers;  it  was  dis- 
cussed in  Council  and  before  the  Board  of  Public  Affairs.  The  parties  op- 
posed to  it  and  the  parties  in  favor  of  it  were  all  heard  and  the  reasons  pre- 
sented on  the  one  side  and  on  the  other.  In  that  ordinance  the  Qiieen  City 
Company  thought  they  had  all  their  rights  protected  and  the  city  thought  it 
had  all  its  rights  protected.  If  you  were  now  simply  asked  to  extend  the 
privileges  of  that  ordinance  for  another  year,  and  give  to  that  company  the 
same  rights  that  they  had  in  the  other  ordinance,  we  would  not  be  here  mak- 
ing any  objections.  I  am  told  that  this  ordinance  is  now  urged  upon  you 
because  that  other  ordinance  will  expire  on  the  thirteenth  of  next  month. 
>fow  we  make  no  objections  to  the  extension  of  that  ordinance  for  another 
year,  so  that,  if  that  were  the  only  reason  for  the  urgency  in  getting  this  ex- 
tention,  we  would  not  be  here  opposing  it.  But  this  present  ordinance  differs 
from  the  former  ordinance  in  two  vital  particulars.  In  the  first  place  it 
changes  the  price  of  gas  from  fifteen  cents  a  cubic  thousand  to  fifty  cents. 
That  is  a  difference  of  thirty -five  cents.  We  claim  that  some  reason  ought 
to  be  given  to  this  Committee  and  to  the  Council  to  show  why  such  a  radical 
change  should  have  been  made  in  the  proposed  price.  We  have  not  heard 
that  natural  gas  had  failed  ;  that  the  crop  decreased.  On  the  contrary,  new  fields 
have  been  opened,  and  yet  the  price  has  been  put  up  to  fifty  cents.  Now, 
against  that  increase  these  men  whom  I  represent  will  desire  to  be  heard. 
The  other  particular  will  be  found  in  the  first  paragraph  of  the  first  section. 
It  reads  as  follows: 

"And  this  grant,  so  far  as*  it  relates  to  or  authorizes  the  use  of  artficial 
fuel  gas,  shall  not  be  made  use  of  until  such  main  or  mains  have  been 
so  constructed  from  the  gas  field  to  the  corporation  line  as  aforesaid,  nor 
until  and  unless  it  is  then  or  thereafter  found  to  be  impracticable  to  ob- 
tain or  furnish  natural  gas  as  herein  required:  and  in  the  event  of  the 
right  to  supply  artificial  fuel  gas  being  made  use  of  under  the  terms 
hereof,  then  no  permit  shall  be  granted  for  the  laving  of  main  or  service 
pipes  within  the  corporate  limits  of  the  city,  nor  shall  any  streets,  etc., 
within  said  corporate  limits  be  entered  upon  or  opened  for  the  purpose 
of  laying  any  such  main  or  service  pipes.*' 

These  are  the  words,  we  claim,  by  which  the  rights  of  the  city  and  the 
rights  of  the  people  are  thoroughly  protected.  These  are  the  words  of  the 
former  ordinance.  They  were  the  safe-guards  that  were  thrown  around,  and 
they  were  the  results  of  study  and  consultation.  They  represent  the  kernel 
of  the  whole  business.  These  things  are  now  left  out  of  this  new  ordinance. 
And  without  any  reason  being  given  for  it,  too.  The  other  changes  in  this 
ordinance,  beyond  that  which  fixes  the  price  from  fifteen  to  fifty  cents,  are  but 
slight,  if  x  ave  carefully  examined  them.  They  will  be  found  in  the  sixth 
section,  in  lines  97  to  103,  inclusive,  as  follows: 

"  Should  said  company,  its  successors  or  assigns,  neglect  or  fail  to 
prosecute,  with  reasonable  diligence,  the  work  of  bringing  natural  gas, 
or  if  natural  gas  can  not  be  obtained,  then  artificial  fuel  gas,  to  Cincin- 
nati, for  the  foregoing  purpose,  and  are  not,  at  the  end  of  one  year  after 


the  passage  of  this  ordinance  supplying  at  least  twenty  million  cubic 
feet  of  natural  gas,  or  if  natural  gas  can  not  be  so  furnished,  then  arti- 
ficial fuel  gas,  in  said  quantity,  within  said  time  after  the  grant  for  arti- 
ficial fuel  gas  can  be  made  use  of  hereunder,  daily  to  the  citizens  of 
Cincinnati,  the  franchise  and  privilege  herein  shall  be  forfeited,  and  this 
ordinance  shall  become  null  and  void." 

Now,  I  think,  gentlemen,  I  have  pointed  out  to  you  all  the  differences  be- 
tween these  two  ordinances.  What  I  am  asking  is  not  to  make  any  argument 
against  the  new  ordinance  just  now,  but  to  be  given  a  little  more  time,  so  that 
we  mav  be  heard.  You  are  asked  to  strike  out  provisions  that  were  intended 
to  protect  the  city,  to  give  away,  without  any  consideration  whatever,  a  fran-  • 
chise  that  may  be  worth  a  great  deal  more  money  than  that,  a  great  deal  more 
money  than  the  hundred  thousand  dollars  another  company  has  already  of- 
fered the  city  for  a  similar  franchise.  It  seems  to  me  that  there  are  special 
reasons  why  there  should  be  a  delay  in  this  matter  since  it  came  up  from  the 
other  Board  without  any  discussion,  and  that,  too,  with  a  bare  majority  of 
one.  The  bodv  of  gentlemen  whom  I  represent  ask  that  they  may  have  a  full 
and  fair  hearing  before  your  honorable  Committee. 

Mr.  Spiegel.    Any  body  else  to  be  heard  ? 

Gen.  Hickenlooper.  I  must  confess  a  great  disappointment  at  the  non- 
appearance of  any  body  representing  the  other  side.  You  are  aware  it  has 
always  been  customary  for  the  promoters  of  any  enterprise,  or  project,  to  ap- 
pear and  discuss  its  merits;  to  point  out  and  explain  its  virtues;  and,  if  possi- 
ble, justify  objectionable  features  connected  with  the  ordinance.  In  the  pass- 
age of  the  original  ordinance,  they  were,  if  I  am  not  mistaken,  two  months 
occupied  in  discussing  its  merits,  fro  and  con,  before  it  reached  this  Commit- 
tee. There  were  discussions  before  the  Committee,  through  which  the  ordi- 
nance was  very  generally  understood  by  all  parties  in  interest.  I  only  ask  of 
you  gentlemen  the  same  consideration  that  matters  of  this  kind  have  generally 
received.  You  are  probably  aware  that  I  am  a  very  busy  man.  I  am  not  a 
Daniel  Webster  in  information,  but  I  do  profess  to  have  some  knowledge  that 
may  be  of  service  to  you  gentlemen  in  intelligently  deciding  upon  this  ordi- 
nance. I  would  like  a  little  time  to  get  this  information  ready  for  you.  The 
way  would  have  been  much  clearer,  and  the  arguments  much  more  compre- 
hensive, if  the  promoters  of  this  enterprise  had  appeared  before  you  first  and 
subjected  themselves  to  an  inquiry  that  men  should  be  subjected  to  under  such 
circumstances.  The  ordinance  is  not  an  amendment  to  an  ordinance,  in  any 
sense  of  the  word,  but  one  that  produces  a  radical  change  in  the  whole  sub- 
ject. It  is  no  counterpart  of  the  one  which  you  passed  about  a  year  ago. 
Therefore,  in  justice  to  the  interests  which  I  represent,  which  are  second  to 
none  in  this  city,  I  ask  as  a  personal  favor  that  you  gentlemen  will  postpone 
its  further  consideration  until  I  can  have  the  time  to  prepare  an  argument 
which  will  tend  to  increased  information  upon  this  subject. 

Mr.  Mullen.  I  think  this:  I  don't  think  we  could  very  well  adjourn  until 
Fridaj',  for  that  is  the  regular  meeting  day  of  the  Council,  and  there  would  be 
no  time  to  consider  this  matter  before  it  would  be  time  to  call  the  Council  to 
order.    The  best  thing  to  do  is  to  adjourn  until  Saturday.    It  will  take  until 


10 


five  o'clock  to  get  through  this.  I  therefore  move  that  further  discussion  be 
postponed  until  next  Saturday  week.    That  will  give  you  time,  General  ? 

Gen.  Hicheniooper.    I  will  try  and  be  ready  by  that  time. 

Mr.  Schlotman.  I  would  sooner  have  it  postponed  until  next  Monday 
week.    I  move  that  as  an  amendment. 

Mr.  Jordan.  That  will  suit  me.  I  think  Judge  Goebel  will  let  me  off  long 
enough  to  come  down  here. 

Mr.  Mullen.  I  accept  the  amendment,  with  the  suggestion  that  the  clerk 
notify  every  body  at  all  interested  in  this  subject  to  be  present.  It  ought  to 
be  put  in  the  papers. 

The  Committee  then  adjourned  until  Monday,  September  8th,  at 
two  o'clock,  and  the  clerk  was  instructed  to  notify  every  body  con- 
cerned. 

The  Committee  on  Light  from  the  City  Council  met  in  the  Council 
Chamber,  on  Monday  afternoon,  September  8,  1890,  to  consider  the 
proposition  to  amend  the  Queen  City  Natural  Gas  and  Fuel  Com- 
pany's ordinance.  Of  the  Committee  there  were  present '  Messrs. 
Mullen,  Heyn,  McDonough.  Spiegel,  Schweninger,  Schlotmann  and 
Berger.  Besides  these  gentlemen,  Gen.  Hickenlooper,  Bently  Mat- 
thews, Chas.  W.  Baker  and  Isaac  Jordan  were  present. 

Mr.  Spiegel  called  the  Committee  to  order  and  presided,  and  Mr. 
Schlotmann  acted  as  secretary. 

Mr.  Spiegel .  We  adjourned  to  this  time  in  order  to  hear  parties  both  for 
and  against  this  ordinanee.    Now  is  the  time  to  be  heard. 

Mr.  Matthews.  All  that  I  came  to  say  was  to  urge  that  this  matter  be 
acted  on  so  that  the  matter  could  be  expedited. 

L  Mr.  Spiegel.    Have  you  any  thing  to  say  on  the  merits  of  the  ordinance  ? 

Mr.  Matthews.  No.  It  is  full  of  merits;  so  many  of  them  that  I  could 
not  pick  them  all  out.  I  have  nothing  to  say  of  them  until  somebody  attacks 
them.  It  is  an  ordinance  precisely  like  an  ordinance  passed  a  year  ago.  It 
was  passed  after  a  deal  of  examination  and  inquiry.  There  are  two  or  three 
changes  that,  if  you  have  considered  it  at  all,  you  have  probably  noticed.  One 
increases  the  price,  and  one  extends  the  time.  This  amended  ordinance  pro- 
vides that  the  company  may  have  the  option  to  do  one  thing  or  the  other,  to 
furnish  natural  gas  or  artificial  fuel  gas.  I  don't  pretend  to  know  any  thing 
about  gas,  and,  therefore,  I  don't  know  whether  I  can  give  you  any  informa- 
tion about  the  process  of  making  this  gas  or  not,  or  about  the  price.  I  can 
•only  judge  of  the  prices  that  obtain  now  in  Cincinnati.  About  those  prices 
I  might  have  a  good  deal  to  say. 

Mr.  Baker.  Now  gentlemen,  there  are  two  things  that  I  desire  to  say.  It 
is  about  the  ordinance  in  which  my  friend  Mr.  Matthews  is  interested.  I 
think  it  ought  to  be  said  to  this  Committee.  He  says  he  doesn't  know  any 
thing  about  the  gas  business.  Probably,  if  he  did,  he  could  give  to  you 
gentlemen  some  enlightenment  that  would  be  of  benefit  to  us  all.    The  ordi- 


11 

I 

nance  for  which  he  appears  was  passed  a  year  ago  the  thirteenth  of  this  month, 
and  passed  under  the  pretense  of  furnishing  natural  or  fuel  gas.  The  year 
has  nearly  elapsed,  and  there  is  no  man  here  who  knows  who  are  the  owners 
of  this  company  or  franchise,  where  its  habitation  is,  whence  it  came,  or  what 
it  is  to-day.  The  company  has  not  moved  a  foot  or  a  finger.  They  have 
made  no  move  to  furnish  natural  or  fuel  gas.  And  now,  after  a  year  has 
nearly  elapsed,  they  come  in  here  and  ask  that  the  price  be  raised  from  fiftei  n 
cents  a  thousand  to  fifty  cents.  Now  I  know  something  about  this  business, 
and  I  sav  to  you  gentlemen  that  pure  water  gas  can  be  manufactured,  and  a 
plant  can  be  built  to  furnish  twenty  million  cubic  feet  a  day  to  the  people  01 
this  city,  and  if  the  franchise  to  do  this  thing  is  given  a  company,  I  say  to 
you  that  the  right  to  do  it  is  almost  as  good  as  a  gold  mine;  it  is  almost  as 
good  as  the  franchise  which  the  present  company  possesses.  These  gentlemen 
come  in  here  and  ask  it  without  any  safe-guards  thrown  about  it.  They  ask 
vou  to  give  them  a  veritable  gold  mine  which  they  can  take  out  and  sell  at 
any  time,  and  that  for  a  very  considerable  sum  of  money.  They  neither  have 
a  process  of  making  fuel  gas,  nor  do  they  know  one.  They  are  simply  here  to 
get  a  franchise  as  they  got  one  a  year  ago.  We  can  safely  judge  of  the  fut- 
ure bv  what  we  have  seen  in  the  year  that  is  passed.  A  year  ago,  they  got 
this  franchise  under  promise  that  they  would  pipe  natural  gas,  or  be  furnish- 
ing fuel  gas,  within  a  year.  There  has  not  been  a  finger  uplifted,  except  to 
sell  that  ordinance,  and  now  they  come  to  you  and  ask  that  it  be  made  even 
more  valuable  by  amending  the  price  which  they  shall  be  allowed  to  charge 
the  consumer.  They  ask  you  to  turn  over  to  them  the  right  to  rip  the  streets. 
They  are  not  bound  by  that  ordinance  to  build  a  thing,  to  lay  a  single  foot  of 
pipe.  They  can  simply  lay  back  and  wait  another  year  if  they  want  to  do  so. 
They  may  undertake  to  squeeze  the  Cincinnati  Gas  Company.  It  is  a  game 
of  tails  we  win  and  heads  the  city  loses. 

I  sent  a  communication  to  the  Board  of  Public  Improvements,  and,  at  the 
same  time,  one  to  your  Board,  proposing  to  pay  one  hundred  thousand  dol- 
lars for  a  franchise  with  all  the  safe-guards  that  your  solicitor  might  suggest, 
for  a  franchise  such  as  is  proposed  to  be  given  to  this  Queen  Citv  Company 
for  nothing.  In  addition  to  this,  we  propose  to  give  the  city  free  fuel  for  the 
city  buildings;  or  two  and  a  half  per  cent  on  our  gross  receipts.  And  this  is 
with  the  understanding  that  unless  the  contract  is  carried  out  on  our  part  the 
entire  works  shall  be  forfeited  to  the  city.  And  there  shall  be  no  sell  out  to 
any  othjer  company  either.  When  the  Board  of  Improvements  asked  me  to 
draft  an  ordinance  I  drafted  one,  and  said  that  I  v\as  perfectly  willing  to  have 
the  solicitor  hedge  the  ordinance  about  with  all  the  safe-guards  he  could  think 
of.  Now  when  I  presented  this  to  the  Board  of  Improvements,  I  urged  that 
it  would  be  only  the  fair  thing  to  let  this  go  to  your  bodv  along  with  the 
Queen  City  ordinance  that  had  been  already  transmitted.  The  Board  de- 
clined to  transmit  by  a  vote  of  three  to  two,  and,  perhaps,  in  appearing  before 
your  Committee  I  am  trespassing  on  your  kindness  in  attempting  to  urge 
upon  you  this  ordinance.  My  clients  own  the  only  possible  process  of  manu- 
facturing fuel  gas  to  advantage.  It  is  known  as  the  Loomis  process.  The 
Queen  City  Company  own  nothing.  The  process  owned  by  my  clients  is  now 
in  operation  in  Addyston.    They  are  using  gas  there  furnished  from  a  plant 


12 


owned  by  my  clients.  In  the  city  of  Sandusky  and  in  Akron  are  works  op- 
erated under  the  Loomis  system.  It  is  used  in  the  process  of  making  crock- 
ery and  tiling.  And  in  the  city  of  East  Liverpool  a  plant  is  now  about  to  be 
constructed.  A  portion  of  my  clients  have  been  invited  to,  or  are  about  to, 
contract  for  furnishing  a  private  plant  for  a  large  manufacturing  establishment 
in  this  city.  We  arc  here  meaning  business.  As  soon  as  the  ordinance  was 
refused  by  the  Board  of  Improvements,  or  very  soon  after,  the  solicitor  was 
instructed  to  prepare  an  ordinance  that  is  to  be  general  in  its  character,  and  if 
you  will  allow  us  we  will  bid  under  that  ordinance,  and  that  is  the  onlj'  way 
to  do  it.  I  represent,  in  good  faith,  a  company  of  gentlemen  who  not  only 
own  this  process,  but  are  possessed  of  ample  means  to  build  works  in  Cincin- 
nati, and  they  will  build  a  fuel  gas  works  and  have  it  in  operation  within  a 
year  from  the  time  you  give  them  the  same  rights  that  are  given  under  the 
amendments  proposed  for  this  Queen  City  ordinance.  We  will  do  this  after 
you  have  incorporated  any  safe-guards  you  choose  to  prevent  us  from  raid- 
ing any  company.  They  do  say  we  are  trying  to  raid  some  other  gas  com- 
pany now.  "  Father,"  said  the  farmer's  boy,  "  they  do  say  that  trout  bite 
now." 

"Never  mind  the  trout."  said  the  old  man,  "you  just  hoe  right  on  and  the 
trout  wont  bite  you."  All  we  have  got  to  say  is  that  if  the  Cincinnati  Gas 
Company  will  go  right  on  furnishing  illuminating  gas  we  wont  bite  them.. 
We  will  not  disturb  them  in  any  way. 

Mr.  Mullen.    Why  didn't  your  company  come  in  here  before  this  ? 

Mr.  Baker.  I  haven't  the  slightest  idea.  I  don't  know  why  they  didn't 
show  their  good  sense  by  applying  before  this,  by  employing  me  to  come  in 
here  and  apply  for  this  franchise.  You  may  depend  upon  it  that  if  they  had 
employed  me  I  should  have  been  here.  You  know  the  old  song  of  Dr.  Watts 
that— 

'•  While  yet  the  lamp  holds  out  to  burn, 
The  vilest  sinner  may  return." 

Gen.  Hichenloofer.    There  are  three  questions  I  would  like  to  ask.  Does 
your  company  propose  to  furnish  gas  for  heating  purposes  only  ? 
Mr.  Baker.    For  heating  purposes  only. 
Gen.  Htckenlooper.    Are  you  incorporated  ? 
Mr.  Baker.    Not  vet. 

Gen.  Hickenloofer.  It  is  assumed  that  the  company  will  be  before  this 
grant  is  made.  * 

Mr.  Baker.  Not  necessarily.  There  is  no  advantage  in  being  incorpo- 
rated. It  sometimes  saves,  or  rather  shields,  gentlemen  from  being  responsible 
for  their  debts  by  not  being  incorporated. 

Gen.  Ilickenlooper.  I  was  going  to  follow  up  that  question  by  asking  if 
vou  were  incorporated  under  the  laws  of  Kentucky,  wherein  there  is  neither 
personal,  nor  corporate,  responsibility. 

Mr.  Baker     There  is  no  Kentucky  incorporation  about  our  company. 

Gen.  Ilickenlooper.  Then  I  will  ask  you  if.  either  as  a  corporation  or  as 
an  individual,  there  is  any  law  which  can  prevent  parties  possessing  this  right 
which  you  seek,  from  disposing  of  it? 


13 


Mr.  Baker.  That  is  a  question  much  mooted  both  in  legislature  and  in 
court.  The  attempt  has  been  made  in  a  great  many  states  to  legislate  so  that 
corporations  can  never  consolidate  or  sell  out  to  each  other.  The  idea  is  to 
keep  alive  competition.  The  nearest  approach  we  have  to  a  successful  law 
of  this  kind  is  one  that  we  have  here  in  Ohio,  by  which  it  is  made  impossible 
for  two  rival  competing  lines  to  consolidate.  The  law  requires  that  they  shall 
be  operated  independently  of  each  other.  That  has  been  found  to  be  the  best 
preventive  of  consolidation.  Still,  I  know  of  no  law  that  will  prevent  the 
owners  of  stock  in  my  company,  if  it  were  incorporated,  from  selling  it  to 
General  Hickenlooper,  or  from  General  Hickenlooper's  company  selling  their 
stock  out  to  our  company ;  and  let  me  tell  you,  General  Hickenlooper,  there 
is  more  danger  of  your  stockholders  selling  their  holdings  to  our  company, 
than  of  our  stockholders  selling  out  to  your  company.  I  think  counsel  here 
will  agree  with  me  that  you  gentlemen  can  pass  an  ordinance  in  which  you 
have  a.  provision  that  can  be  sustained  in  court  that  will  prevent  a  company 
obtaining  the  franchise  from  selling  out.  You  can  so  tie  them  up  that  any  at- 
tempt at  selling  out  will  make  them  forfeit  their  franchise.  That  is  about  all 
you  can  do. 

Mr.  Mullen.  Don't  you  know  that  the  C.  &  O.  bridge  was  built  under  the 
direction  of  the  Kentucky  Legislature  that  there  should  be  a  lower  rate  of 
charges  than  were  made  on  the  Suspension  Bridge  ?  And  don't  vou  know 
that  they  have  already  entered  upon  a  combination  ?  They  passed  a  bill  that 
they  could  not  combine,  and  they  have  already  combined. 

Gen.  Hickenlooper.  I  have  no  disposition  to  enter  into  a  controversy  with 
Mr.  Baker,  but  I  would  like  a  direct  answer  to  my  question.  As  soon  as  your 
company  is  incorporated  is  there  any  thing,  or  any  law,  by  which  your  people 
can  be  prevented  from  selling  to  me,  or  as  an  individual,  prevent  me  from  pur- 
chasing their  stock  ? 

Mr.  Baker.  Yes.  Strike  out  from  this  ordinance  the  word  assigns,  and 
strike  out  from  the  Queen  City  ordinance  the  word  assigns. 

Gen.  Hickenlooper.  That  has  nothing  to  do  with  the  question.  Is  there 
any  law  which  prevents  you  from  selling,  or  disposing  of  vour  stock  ? 

Mr.  Baker.  No,  no.  There  is  no  law  which  will  either  prevent  our  sell- 
ing or  you  from  buying  it. 

Gen.  Hickenlooper.  If  you  wanted  to  sell,  and  I  wanted  to  buv,  there  is 
nothing  in  law  to  prevent  the  transaction. 

Mr.  Baker.    No,  sir. 

Air.  Spiegel.  I  think  it  will  expedite  matters  if  all  these  discussions  will 
cease.  It  does  not  make  a  bit  of  difference  which  of  your  companies  can  buy 
the  other,  or  which  will  sell.  All  this  discussion  goes  for  naught."  It  does  not 
enlighten  the  committee  in  the  least. 

Mr.  Mullen.  Mr.  Chairman,  I  think  it  does  enlighten  the  committee  a 
great  deal.  We  want  to  find  out  whether  Cincinnati  can  grant  a  franchis  2 
that  can  be  sold  out  on  the  first  opportunity.  Any  franchise  granted  by  Cin- 
cinnati, I  think,  can  be  sold  if  any  body  can  be  found  to  buy  it. 

Gen.  Hickenlooper.  With  your  permission.  I  would  like  to  propound  a  few 
questions  to  the  representative  of  the  Queen  City  Gas  Company.  ^Turning 


14 


to  Mr.  Matthews.]    Is  it  your  purpose  to  make  a  gas  for  heating  purposes 

only  ? 

Mr.  Matthews.    I  am  ready  to  answer  any  questions  to  the  Committee. 

Gen.  Hickentoofer.    Then  I  will  ask  that  the  Committee  ask  the  question. 

Mr.  Spiegel.  As  the  representative  of  the  other  company  has  answered 
questions,  I  see  no  reason  why  the  representative  of  the  Queen  City  Company 
should  not. 

Mr.  Matthews.  I  would  say  most  unqualifiedly  yes.  The  ordinance  pro- 
vides that  it  shall  be  "fuel  gas,"1  and  that  precludes  any  thing  else. 

(,en.  Ilickenlooper.  I  beg  pardon,  but  it  does  not  preclude  any  thing  else. 
Is  it  your  purpose  to  vend  gas  for  heating  purposes  exclusively,  or  for  illu- 
minating purposes  ? 

Mr.  Matthews.  I  can  only  answer  that  the  ordinance  provides  for  gas  for 
heating  purposes  exclusively.  This  precludes  us  from  furnishing  gas  for  il- 
luminating purposes. 

Mr.  Baker.  You  asked  me  whether  my  company  could  not  furnish  gas 
for  illuminating  purposes  after  .it  got  the  franchise  to  furnish  heating  gas,  and 
I  told  you  no;  but  if  you  ask  me  whether  after  I  have  the  heating  gas  in  my 
house,  if  I  should  want  to  attach  some  kind  of  tips  to  my  gas  burners  which 
the  heating  gas  will  make  almost  incandescent  and  thus  give  me  light;  why,  I 
shall  say  I  have  the  right,  and  that  no  illuminating  gas  company  could  pre- 
vent me,  and  it  could  not  successfully  enjoin  the  heating  gas  company  from 
continuing  to  supply  me  with  gas. 

Mr.  Matthews.  I  understand  that  you  called  the  attention  of  this  Board 
a  year  ago  to  a  case  in  St.  Louis  where  a  party  using  fuel  gas  there  was  per- 
mitted to  use  it  for  whatever  purposes  he  chose.  You  said  the  court  had  so 
decided.  I  examined  into  that  case  and  the  court  did  not  decide  any  such 
thing.  Previous  to  ascertaining  what  the  court  did  decide,  I  had  considered 
this  matter  very  thoroughly.  The  way  I  look  at  it  is  this:  Assuming  that 
Council  has  passed  this  ordinance,  that  is  a  contract.  I  don't  care  what  the 
construction  is,  that  is  a  contract.  I  agree  to  do  a  certain  thing  for  a  certain 
consideration.  That  is  a  contract.  I  am  to  furnish  a  certain  kind  of  gas,  and 
that  does  not  mean  some  other  kind  of  gas..  Somebody  may  ask  me  why  I 
made  a  certain  kind  of  contract,  and  criticise  the  contract,  but  the  answer  is 
there  is  the  contract.  Personally,  I  have  not  a  bit  of  doubt  that  if  it  were 
ascertained  that  a  company  authorized  to  furnish  fuel  gas  were  found  furnish- 
ing gas  for  lighting,  it  could  be  enjoined. 

Mr.  Jordan.  What  you  are  asking  in  these  amendments  is  to  ask  for  an 
extension  and  on  new  terms. 

Mr.  Matthews.    So  far  as  that  is  concerned,  the  terms  are  the  same. 

Ge/i.  Ilickenlooper.    Are  you  incorporated  ? 

Mr.  Matthews.    We  are. 

Gen.  Ilickenlooper .  Is  there  any  thing  in  law  that  will  prevent  your  com- 
pany from  selling  its  stock  to  me  ? 

Mr.  Mattl/e-cvs.  That  has  been  answered,  and  I  want  to  say  that  I  have 
my  opinion  of  a  man  who  will  come  before  this  body  and  say  to  the  mem- 
bers, don't  grant  this  franchise,  because  it  will  interfere  with  my  company  in 
the  business  of  squeezing  the  city.    And  now  if  the  General  is  through  with 


L5 


me,  I  have  a  word  or  two  to  say  about  this  proposition  which  Mr.  Baker  has; 
presented  to  the  Board.  He  speaks  of  presenting  the  city  with  a  hundred 
thousand  dollars  for  this  franchise  which  I  may  be  pardoned  for  saying  that  I 
know  he  never  intended  to  let  get  out  of  his  pocket.  It  is  like  one  of  those 
certified  checks,  or  certificates  of  deposit.  They  are  almost  like  money,  but 
then  you  know  a  bank  or  a  company  can  get  out  an  injunction  and  prevent 
the  payment  of  the  cash  on  them.  He  presents  an  ordinance,  and  for  its 
passage  proposes  to  give  the  city  a  hundred  thousand  dollars  and  two  per 
cent  on  its  gross  receipts.  He  comes  and  asks  an  amendment  of  this  ordinance 
by  inserting  the  name  of  his  company  in  place  of  the  Queen  City.  In  order 
to  make  it  you  must  not  only  amend  it  by  inserting  his  name,  if  you  can  find 
one — he  has  not  yet  been  able  to  find  one — but  you  must  insert  the  other  part 
of  his  proposition.  In  order  to  grant  him  a  franchise,  3  0a  must  first  find  a 
name  for  his  company. 

Mr.  Baker.  The  company  I  represent,  without  any  name,  is  better  than 
yours,  name  and  all.  Our  unincorporated  company  is  a  great  deal  better 
than  yours  incorporated.  What  is  the  capital  stock  of  your  company  any 
way,  Mr.  Matthews?  I  will  tell  you  what  it  is.  To  keep  from  paying  what 
the  laws  of  Ohio  require  for  articles  of  incorporation,  you  capitalized  at  only 
fifty  thousand  dollars. 

Mr.  Matthews.  And  to  keep  from  pajdng  any  thing,  you  never  capitalized 
at  all,  and  never  got  out  any  articles  of  incorporation. 

Mr.  Spiegel.  Up  to  this  time,  I  don't  think  any  of  the  members  of  the 
Committee  know  who  either  one  of  you  represent. 

Mr.  Matthews.  You  turned  to  me  a  little  while  ago  and  said  you  sup- 
posed I  represented  the  Queen  City  Company.  I  will  tell  you  that  there  is 
one  man  in  my  company  who  can  buy  out  Mr.  Baker's  clients  and  sell  them 
several  times.  He  can  do  this  ten  times  over.  What  I  want  to  do  now  is  to 
dismiss  this  talk. 

Mr.  Baker.  Name  your  clients  that  will  buy  mine  ten  times  over.  Who 
is  your  man  ? 

Mr.  Matthews.    I  won't  tell  you. 

Mr.  Baker.  I  know  who  your  clients  are.  Tour  client  is  not  even  sure 
he  is  in  this  company.  He  has  got  his  stock  in  such  a  shape  that  he  holds  it 
if  this  ordinance  goes  through,  and  he  drops  it  if  the  ordinance  fails.  I  can 
tell  you  exactly  who  the  Queen  City  Company  is,  but  I  am  not  going  to  tell 
you.    I  had  dealings  with  them  once. 

Mr.  Matthews.  That  is  the  reason  they  have  not  any  thing  left,  if  you  had 
business  dealings  with  them. 

Mr.  Jordan.  After  hearing  from  Mr.  Baker  as  to  the  methods  of  his 
company,  and  the  opinion  of  Mr.  Matthews  as  to  Mr.  Baker's  company, 
and  what  is  back  of  it,  I  don't  see  that  there  is  any  thing  else  before  you. 
That  seems  to  me  to  be  the  end  of  the  entire  controversy.  I  came  to  listen 
to  an  argument  on  this  question.  I  would  like  to  hear  this  subject  discussed 
by  some  body  who  knows  something  about  it.  The  Committee  has  called 
upon  Brother  Matthews,  and  he  says  he  knows  nothing  about  it. 

Mr.  Matthews.    Which  are  you  now,  Mr.  Jordan,  a  gas  man  or  a  lawyer? 

Mr.  Jordan.    A  lawyer  protesting  against  your  kind  of  gas.    From  what 


16 


you  say  of  my  friend,  Mr.  Baker,  and  from  what  he  says  of  vou,  I  should 
judge  that  neither  of  you  have  any  clients  at  all.  I  would  like  to  hear  what 
the  solicitor  has  to  say  about  this  subject  of  changing  the  price  of  gas  from 
fifteen  cents  to  fifty,  and  whether,  for  this  disadvantage  to  the  city,  the  streets 
are  to  be  laid  open  from  one  end  to  the  other.  L  would  like  to  hear  some- 
body discuss  the  merits  of  this  question;  I  would  very  much  like  to  hear  from 
Gen.  Ilickenlooper,  and  what  he  has  to  say  on  the  subject.  I  understood  that 
he  would  come  here  prepared  to  show  reasons  why  this  ordinance  should  not 
pass. 

Mr.  Mullen.  The  Committee  would  like  to  hear  what  your  reasons  are 
for  objecting  to  this  ordinance. 

Mr.  Jordan.  In  the  first  place,  this  ordinance  was  passed  about  a  vear 
■ago,  and  the  Queen  City  Company  was  given  the  right  to  go  ahead  and 
put  down  their  plant,  and  in  doing  so  they  were  hedged  about  with  all  the 
provisions  necessary  to  protect  the  city.  Before  that  ordinance  was  passed, 
the  utmost  publicity  was  given  to  it,  and  for  weeks  it  was  under  discussion, 
and  all  its  various  phases  examined.  It  was  agreed  by  the  terms  of  that 
•contract  that  our  citizens  should  have  gas  at  fifteen  cents  a  thousand  cubic 
feet,  and  it  is  now  proposed  to  change  the  price  to  fifty  cents  a  thousand, 
and  there  has  not  been  offered,  so  far  as  I  have  heard,  one  reason  why  this 
should  be  done.  No  argument  on  that  question  has  been  offered.  No  one 
has  told  the  Board  of  Public  Improvements,  or  any  member  of  this  bodv, 
why  that  change  should  be  made.  Mr.  Matthews  has  not  said  to  this  Com- 
mittee why  this  change  should  be  made.  If  this  was  a  good  thing  for  the 
people  of  Cincinnati  and  for  the  company  a  year  ago,  it  ought  to  be  a  good 
thing  now.  What  reason  has  been  presented  to  you  that  this  grant  should 
be  made  on  the  terms  demanded  by  this  amendment?  Somebody  ought  to 
present  some  argument  to  show  you  why  this  thing  should  be  done.  You  are 
giving  this  ordinance  and  with  it  you  are  throwing  away  all  the  safe-guards 
that  were  thrown  about  this  ordinance  for  the  protection  of  the  city.  You  are 
going  to  allow  them  to  rip  up  the  streets  without  any  safe-guards  for  their 
protection.  You  have  spent  more  than  four  million  dollars  on  your  streets, 
and  now  this  company,  or  these  two  companies,  come  here  and  ask  for  the 
right  to  rip  them  up  without  any  safe -guards  in  their  ordinance  to  protect 
them.  I  should  like  to  ask  of  Mr.  Matthews  to  explain  why  they  have  left 
out  of  this  ordinance  certain  things  necessary  to  protect  the  city  of  Cin- 
cinnati. 

Another  thing,  why  have  they  not  gone  on  and  furnished  fuel  gas  ?  They 
have  not  filed  a  single  scrap  of  paper  since  they  filed  articles  of  incorporation; 
they  have  not  complied  with  the  statutes  of  the  State.  Since  Council  passed 
this  ordinance,  has  any  body  got  any  benefit  from  it  ?  What  benefit  are  you 
going  to  get  by  the  extension  of  it,  or  by  the  giving  of  a  new  grant?  Why 
should  they  want  to  strike  out  this  passage  from  the  ordinance: 

"  and  this  grant,  so  far  as  it  relates  to  or  authorizes  the  use  of  arti- 
ficial fuel  gas,  shall  not  be  made  use  of  until  such  main  or  mains  have 
been  so  constructed  from  the  gas  fields  to  the  corporation  line,  as  afore- 
said, nor  and  unless  it  is  then  or  thereafter  found  to  be  impracticable  to 
obtain  or  furnish  natural  gas  as  herein  required;  and  in  the  event  of  the 


17 


right  to  supply  artificial,  fuel  gas  being  made  use  of  under  the  terms 
hereof,  then  no  permit  shall  be  granted  for  the  laving  of  main  or  service 
pipe  within  the  corporate  limits  of  the  city,  nor  shall  any  streets,  etc., 
within  said  corporate  limits,  be  entered  upon  or  opened  for  the  purpose 
of  laying  any  such  main  or  service  pipes  until  proper  and  sufficient 
works  for  manufacturing  and  delivering  daily  20,000,000  cubic  feet  of 
such  fuel  gas  are  completed  by  the  grantees  herein,  and  until  such  com- 
pany shall  have  demonstrated  its  capacity  to  manufacture  and  deliver 
such  quantity  of  fuel  gas  to  the  satisfaction  of  the  Board  of  Public 
Affairs?" 

NoW  tell  us  what  reason  there  is  for  striking  out  that  clause.  It  was  never 
made  known  to  the  Board  of  Improvements  why  this  clause  should  be  stricken 
out,  and  it  has  never  been  made  known  to  the  City  Council  why  it  has  been 
stricken  out.  They  know  they  can't  do  it;  they  know  they  can't  accomplish  their 
purposes,  so  long  as  that  clause  stands  there.  Standing  here  and  representing 
the  parties  I  do,  I  make  no  objections  to  that  ordinance  in  the  words  as  it  was 
originally  passed.  If  we  make  no  objections  to  the  original  grant,  then  let 
them  show  good  reasons  why  this  clause  should  be  stricken  out.  Now  there 
are  two  principal  reasons  that  I  desire  to  present — there  are  many  others  that 
can  be  presented — why  this  ordinance  should  not  pass  as  amended.  By  what 
process  do  you  propose  to  manufacture  fuel  gas  ?  Do  you  intend  to  furnish 
natural  gas?    My  friend,  Mr.  Baker,  says  he  represents  a  particular  process. 

Mr.  Baker.    Yes,  sir. 

Mr.  Jordan.  I  am  not  asking  you  any  thing.  My  brother  Baker  says  he 
has  a  particular  process  of  making  this  fuel  gas,  and  the  only  process  that  is 
worth  knowing.  Now  I  would  like  to  ask  my  brother  Matthews  what  process 
he  has?    I  would  like  to  know  what  kind  of  gas  they  are  going  to  give  us. 

Mr.  Matthews.  I  don't  know.  I  have  heard  of  several  different  kinds  01 
fuel  gas  other  than  the  kind  which  Mr.  Baker  claims  to  have  a  monopoly  on. 

Mr.  Jordan.  I  think  the  Queen  City  Company  ought  to  be  made  to  tell 
what  kind  of  gas  they  propose  to  furnish  to  the  people  of  this  city.  Mr.  Mat- 
thews says  he  has  heard  of  a  great  many  kinds  of  gas,  but  he  tells  you  that 
he  does  not  know  of  any. 

Mr.  Matthews.  Any  kind  of  gas  that  people  can  use  will  do.  Does  the 
Cincinnati  Gas  Company  own  any  exclusive  way  of  making  gas  ? 

Mr.  Jordan.    I  think  not. 

Mr.  Matthews.  The  same  objection  applies  to  them  that  applies  to  us. 
They  don't  own  any  particular  process;  neither  do  we. 

Mr.  Jordan.  Still  I  think  they  have  a  process.  Let  us  go  a  little  bit 
further  in  regard  to  this.  Is  it  not  really  intended,  under  the  guise  of  a  fuel 
gas  ordinance,  to  gO  into  the  business  of  supplying  illuminating  gas?  My 
brother  Baker  takes  a  different  view  of  this  matter  from  that  which  brother 
Matthews  takes.  Brother  Matthews  says  that  a  company  going  into  the  fuel 
gas  business,  and  obtaining  a  franchise  to  furnish  that  kind  of  gas  only,  could 
not  supply  illuminating  gas.  Brother  Baker  insists  that  if  he  were  a  pur- 
chaser of  fuel  gas,  and  wanted  so  apply  that  fuel  gas  to  his  gas  burners  in  such 
a  way  as  to  make  illuminating  gas,  no  court  could  prevent  him  from  doing  so. 
The  general  public  believes  that  this  is  an  ordinance  which  aims  to  eventually 
give  to  the  people  of  this  city  illuminating  gas  as  well  as  fuel  gas. 


18 


Mr.  Matthews.    What,  at  fifty  cents  ? 

Mr.  Jordan.  Oh,  you  started  out  to  supply  gas  at  fifteen  cents.  You  did 
not  find  any  difficulty  in  raising  the  rate  from  fifteen  to  fifty.  It  is  easy 
enough  to  fix  that. 

Mr.  Baker.    You  might  change  the  meter  on  them. 

Mr.  Jordan.  Mv  friend  Baker  may  know  how  to  do  that;  I  don't.  The 
people  of  this  city  have  no  desire  to  enter  into  another  contest  for  another  gas 
company  in  Cincinnati.  If  that  is  the  design  of  this  ordinance,  why  not  say 
so  ?  Why  nol  pass  an  ordinance  that  gives  the  right  to  furnish  either  fuel  or 
illuminating  gas  ?  Pass  sueh  an  ordinance,  and  in  that  way  get  Cincinnati  in 
the  same  condition  that  other  American  cities  are  that  have  had  opposition 
gas  companies.  There  they  have  consolidated,  and  the  price  of  gas  is  higher 
than  ever.  That  is  inevitably  the  case  where  one  company  sells  out  to  the 
other.  Now  what  are  these  two  ordinances  for  ?  Does  any  body  believe  that 
they  intend  to  furnish  us  with  gas  at  fifty  cents  a  thousand  ?  Does'nt  every  body 
know  that  the  object  of  this  legislation  is  to  put  a  valuable  franchise  into  the 
hands  of  a  company  which  they  intend  to  sell  on  the  first  opportunity? 

Mr.  Spiegel.    Now,  General,  it  is  your  turn. 

Mr.  Baker.    Whom  does  General  I Iickenlooper  represent? 

Gen.  Ilickenlooper.  I  will  endeavor  to  be  more  accommodating  than  you 
gentlemen  have  been,  and  tell  you  just  who  I  represent,  before  I  get  through 
with  my  argument. 


THE  FUEL  GAS  QUESTION. 

Argument  of  General  Hickenlooper  Tending  to  Show 
the  Utter  Impracticability  of  any  such  Scheme. 


That  notwithstanding  there  are  Millions  of  Idle  Capital 
Seeking  Investment,  there  is  not  in  the  Whole  World 
a  Single  Incorporated  Company  Distributing  Gas  to 
the  General  Public  for  Heating  Purposes  only. 


That  wherever  such  has  been  Undertaken  it  has  only  been  for  the  Purpose 
of  Covertly  Securing  a  Franchise  for  the  Operation  of  an 
Illuminating  Gas  Company. 


1(J 


THAT    IT    IS    THROUGH    CONSOLIDATION,    AND    NOT  COMPE- 
TITION,  THAT  CHEAP  GAS  IS  OBTAINABLE 


That  the  Citizens  of  New  York,  Brooklyn,  Philadelphia,  and  Baltimore 
are  To-day  Paying  Over  Ten  Million  Dollars  per  Year  more  for  Gas 
than  They  would  have  had  to  pay  had  They  Permitted  the  Es- 
tablishment of  But  One  Company,  and  Controlled  the  Price 
by  Law,  as  the  Cincinnati  Company  is  Controlled. 


That  at  the  Price  Named  in  the  Ordinance  no  Manufacturer  would 
Buy  So-called  "Fuel  Gas,"  because  it  would  Prove  over 
Forty  Times  More  Expensive  than  Coal. 


And  if  Intended  to  Apply  to  Illuminating  Gas,  It  is  Named  only  to  trap  the 
Unwary  and  would  Have  no  Binding  Force  or  Effect  upon  the 
Company  Obtaining  Such  a  Franchise. 


That  the  Coal-Gas  now  being  Supplied  to  the  Cincinnati  Public  is  Ten  Times  as 
Effective  a  Heating  Agent  as  "Producer  Gas,"  and  Three  Times  as  Econom- 
ical as  the  Very  Best  "Unearburetted  Water"  or  "Fuel  Gas"  ever  made. 


Gentlemen — Burdened  as  I  have  been  with  multitudinous  business 
cares  and  engagements,  it  can  hardly  be  expected  that  I  should,  within 
the  brief  time  allotted  me  for  preparation,  be  prepared  to  state  all  that 
I  desired,  or  compile  and  present  all  the  facts  which  I  might  other- 
wise have  been  able  to  do  bearing  upon  the  subject  under  considera- 
tion, or  in  support  of  the  following  proposition : 

There  never  has  been  a  greater  fallacy  attempted  to  be 
instilled  into  the  minds  of  men,  than  that  there  is  now 
known  to  science  any  mode  or  method  by  which  a  non-illu- 
minating gas  can  be  either  profitably  made  and  distributed, 
or,  as  compared  with  existing  methods,  judiciously  and  eco- 
nomically used  for  heating  purposes  only. 

And  any  man  who  attempts  to  otherwise  impress  you  is  either  one 
who  possesses  no  knowledge  of  the  subject,  or  one  who  has  some  sin- 
ister object  in  view,  such  as  I  believe  is  contained  in  the  ordinance 
now  before  you  purporting  to  amend 


20 


ltAn  ordinance  to  authorize  the  Queen  City  Natural  Gas  and  Fuel  Com- 
pany, its  successors  and  assigns,  to  lay  pipes  in  the  streets,  avenues,  alleys, 
lanes,  commons  and  public  places,  for  certain  purposes,  and  under  the  terms 
and  conditions  herein  stated." 

And  which  ordinance,  briefly  stated,  was  presented  to  the  Board  of 
Public  Affairs  on' the  28th  day  of  May,  1889.  Its  provisions  were  the 
subject  of  discussion  at  various  times  extending  over  a  period  of  nearly 
two  months,  during  which  several  amendments  were  made  to  the  orig- 
inal :  among  the  most  important  of  which  was  one  providing  that  be- 
fore the  streets  of  the  city  should  be  entered  upon,  a  main  of  suf- 
ficient capacity  to  carry  twenty  million  cubic  feet  per  day  should  be 
laid  from  the  gas  fields  to  the  corporation  line.  After  which  it  was 
approved,  as  was  also  a  distinctive  natural  gas  ordinance  presented  by 
''The  Miami  Valley  Natural  Gas  Company,"  through  which  that  com- 
pany solicited  permission  to  occupy  the  streets,  but  only  when  and 
after  they  had  demonstrated  their  ability  to  supply  the  required  quan- 
tity of  gas  at  our  corporation  line  by  an  extension  of  their  mains  from 
Dayton  south. 

These  two  ordinances  were  transmitted  to  Council  on  the  19th  of 
July,  and  on  motion  referred  to  the  Committee  on  Light. 

The  latter  ordinance,  backed  by  a  company  that  had  evidenced  its 
faith  by  expending  millions  in  natural  gas  undertakings,  was  left  by 
the  Committee  to  sleep  the  slumber  of  the  just;  while  the  Queen 
City,  whose  backers  were  unknown,  went  on  its  way  rejoicing,  and  on 
the  13th  of  September  was  finally  passed. 

I  said  to  the  members  of  the  Board  then,  and  I  say  to  you  now, 
that  while  the  promoters  of  that  scheme  had  so  successfully  worked 
up  public  sentiment  that  there  was  scarcely  a  man,  woman  or  child  in 
the  whole  city  that  did  not  believe  we  were  about  to  receive  an  abun- 
dant supply  of  natural  gas,  they  never  had  the  slightest  intention  of 
delivering  a  single  foot  of  the  natural  product ;  but  obtained  the  fran- 
chise for  the  sole  purpose  of  acquiring  a  raiding  and  merchantable  in- 
strument. 

But  the  amendment  requiring  them  to  first  lay  a  main  from  the  gas 
field  fulfilled  the  requirements  of  their  publicly  declared  purpose  and 
denned  their  duties:  but  it  had  also  divested  it  of  its  value  as  a 
"raider,"  and  left  it  only  optional  with  its  promoters  to  either  do  what 
they  had  pledged  themselves  to  do  or  abandon  the  scheme. 

This  latter  they  did,  and  now,  lo  and  behold,  the  receivers  of  the 
corpse  are  before  you  asking  that  you  assist  in  bringing  it  back  to  life 


21 


by  assenting  to  so-called  amendments  which  will  renew  the  grant  and 
completely  change  the  character  of  the  franchise  through  an  amend- 
ment which  is  but 

THE  ILLEGITIMATE  OFFSPRING  OF  A  FATHERLESS  SCHEME, 

conceived  in  iniquity,  and  born  of  fraud  under  the  shadow  of  a  nat- 
ural gas  craze,  as  foundationless  as  the  reputed  virtue  of  the  projectors 
of  the  enterprise. 

It  is  unnecessary  for  me  to  dwell  upon  the  proceedings  which 
characterized  the  recent  passage  of  this  amended  ordinance  through 
the  Board  of  Public  Improvements;  you  have  been  made  familiar 
with  them  through  the  public  press,  and  probably,  for  the  credit  of 
the  city,  the  less  said  about  it  the  better;  but  you  are  now  asked  to 
indorse  and  approve  a  proceeding  which  has  been  condemned  by  the 
public  with  a  unanimity  seldom  equaled  in  the  history  of  municipal 
legislation. 

It  is  perfectly  legitimate  and  proper  for  any  parties  so  desiring  to 
openly  and  frankly  present  for  the  consideration  of  our  municipal 
authorities  a  proposition  to  admit  another,  or  competing  gas  com- 
pany, to  enjoy  the  privileges  of  the  city ;  and  it  is  not  only  your  privi- 
lege, but  your  duty,  to  have  such  a  proposition  fairly,  frankly  and  ex- 
haustively discussed,  and  to  render  a  just  decision  in  harmony  with 
the  burden  of  testimony  presented.  But  when  an  attempt  is  made  to 
secure  a  municipal  franchise  through  false  pretenses,  misrepresenta- 
tion, and  falsehood,  the  proposition  merits,  and  should  receive,  your 
most  summary  condemnation. 

I  am  perfectly  aware  that  the  gentlemen  representing  the  opposite 
side  of  the  question  may  claim  that  deference  should  not  be  paid  to 
my  expressed  views,  for  the  reason  that  I  am  an  interested  party. 

I  can  not  understand  why  any  party  should  appear  before  you  un- 
less he  has  some  interest  in  the  question  under  consideration,  and, 
therefore,  it  only  remains  for  you  to  determine  the  character  of  his  in- 
terest, and  properly  estimate  the  value  of  his  testimony  based  upon 
the  reliability  of  his  statements  and  the  character  of  the  persons  he 
represents. 

I  represent  not  only  your  fellow-citizens,  whose  savings  have  been 
invested  in  an  industry  which,  through  the  perfection  of  its  adminis- 
tration, has  contributed  more  than  any  other  one  cause  to  the  growth 
and  prosperity  of  our  city,  but  I  also  appear  in  the  interests  of  another 
large  class  of  your  constituents,  the  gas  consumers  of  the  city ;  and 
last,  but  by  no  means  least,  the  tax-paying  community,  whose  interests 


22 


will  be  materially  affected  should  you  take  favorable  action  upon  the 
subject  now  under  consideration,  namely,  the  granting  of  a  franchise 
to  operate  another  illuminating  or  competing  gas  company  within  the  cor- 
porate limits  of  this  city,  for,  nothwithstanding  the  representations  of 
the  promoters  of  this  scheme  to  the  contrary, 

THIS  IS  NOW  THE  REAL  QUESTION  AT  ISSUE. 

Upon  the  occasion  of  your  former  meeting,  'I  was  not  a  little  dis- 
appointed that  the  modesty  of  the  promoters  of  this  scheme  prevented 
their  presence  and  an  explanation  of  the  many  advantages  which 
would  accrue  to  our  city  through  a  favorable  consideration  of  this 
amended  ordinance ;  for,  when  the  original  was  under  consideration 
before  the  late  Board  of  Public  Affairs,  there  were  numberless  persons 
present  to  paint  in  glowing  colors  the  beauties  of  a  smokeless  city,  and 
name  the  many  millionaires  who  were  tumbling  over  each  other  in 
frantic  efforts  to  be  the  first  to  contribute  the  capital  necessary  to  se- 
cure an  unlimited  supply  of  natural  gas ;  one  of  the  enthusiastic  pro- 
moters saying:  "We  have  now  over  a  million  dollars  capital  con- 
tributed by  the  Lippincotts,  Cunninghams,  Andersons,  and  Emerys," 
when  it  is  now  known  to  be  a  fact  that  there  was  not  a  single  dollar  in 
the  treasury  of  the  concern,  and  at  least  one  of  the  interested  parties — 
who  was  not  named — had  to  give  a  note  for  his  share  of  the  "legal 
expenses." 

Mr.  Doxey,  the  figurehead  of  the  scheme,  the  man,  who,  posing  as 
a  gas  expert,  unhesitatingly  gave  it  as  his  opinion  that  natural  gas 
could  be  piped  around  the  world  without  loss  of  pressure,  stated : 

"  I  have  already  secured  a  large  portion  of  the  leases  necessary  to  this  sup- 
ply, have  a  large  number  of  wells  ready  to  opm  from  lateral  to  the  main  line, 
and  have  in  my  pockets  rights  of  way  for  over  forty-five  of  the  eighty-seven 
miles  required.  Pass  this  ordinance  and  in  less  than  three  months  I  will  de- 
liver at  your  corporation  line  over  twice  twenty  million  cubic  feet  of  natural 
gas  per  day." 

And  yet,  after  receiving  at  your  hands  every  privilege  they  asked, 
and  every  encouragement  our  citizens  could  give,  they  never  made 
the  slightest  pretense  of  an  effort  in  the  direction  of  furnishing  the 
city  with  natural  gas. 

But,  in  lieu  of  such  action,  at  once  set  about  finding  a  purchaser 
for  the  franchise  thus  procured  through  misrepresentation  and  fraud. 

But  the  ever  sharp  and  wary  "raider"  was  not  to  be  caught  by  a 
defective  instrument,  and  hence  it  is  returned  to  you  to  be  invested 


28 


with  merchantable  value  by  increasing  the  limit  of  charge  from  fifteen 
to  fifty  cents,  and  stripping  from  the  ordinance  every  vestige  of  the 
requirement  to  put  down  a  leading  main  before  ripping  up  your 
streets. 

It  is  true  that  in  a  franchise  to  be  used  for  the  purposes  which  this 
is  intended, 

IT  MAKES  BUT  LITTLE  DIFFERENCE  WHAT  PRICE  IS  NAMED, 

for  the  reason  voiced  by  me  in  the  original  hearing  when  I  said : 
"  The  insertion  of  a  deceptive  indication  of  the  price  to  be  charged 
need  mislead  no  one,  for  while  the  '  franchise '  holds  good  the  price, 
may  be  changed  at  any  time.  For  while  the  law  expressly  provides 
that  if  such  a  price  be  accepted,  it  may  not,  during  the  period  named, 
be  reduced  below  such  a  figure,  it  nowhere  provides  that  it  may  not  be 
changed  and  put  at  a  higher  one.  In  fact  the  inference  to  be  drawn 
from  a  close  reading  of  the  law  is  that  it  provides  for  just  such  an 
act." 

Could  language  have  been  more  prophetic;  for,  notwithstanding 
they  originally  inserted  ten  cents,  and  expressed  supreme  satisfaction 
with  the  committee's  assent  to  an  increase  of  thirty-three  per  cent, 
here  they  are — without  having  invested  one  dollar,  or  turned  a  shovel- 
ful of  earth — asking  you  to  not  only  remove  well-considered  restric- 
tions, but  to  increase  the  price  from  fifteen  to  fifty  cents,  without 
being  able  or  willing  to  assign  any  earthly  reason  for  so  doing. 

The  abandonment  of  the  natural  gas  disguise  and  the  assumption 
of  fuel  gas — a  fresher  and  not  an  entirely  played-out  term — need  give 
no  greater  assurances  of  sincerity,  for  "a  rose  by  any  other  name 
would  smell  as  sweet."  There  is  not  a  gas  made  that  may  not  prop- 
erly be  called  a  "  fuel  gas,"  for  any  gas  which  is  or  can  be  used  for 
heating  purposes  is  a  ' '  fuel  gas;"  but  the  assumption  of  such  a  term 
carries  with  it  no  obligation  to  manufacture  and  distribute  a  gas  which 
can  be  used  for  "  fuel"  purposes  alone. 

The  qualifying  clause,  that  "nothing  herein  shall  be  construed  to 
permit  the  supply  of  gas  for  illuminating  purposes,"  need  mislead  no 
one ;  upon  the  contrary,  it  is  but  additional  evidence  of  the  deception 
practiced,  for  the  City  Solicitor  at  the  first  hearing  made  the  following 
reply  to  President  Smith's  inquiry : 

Mr.  Smith.    After  it  is  carried  into  the  houses  of  the  people,  what  do  you 
say  to  the  statement  that  they  can  do  any  thing  they  please  with  the  gas  ? 
Mr.  Horstman.    I  think  that  statement  of  General  Hickenlooper  is  correct. 


24 


"  I  think  it  has  been  decided  that  the  purchaser  could  use  it  for  either  fuel 
or  illuminating  purposes.  The  courts  could  exercise  no  control  over  it  after 
it  has  been  received  into  the  houses." 

But,  you  may  say,  if  it  should  be  their  purpose  to  distribute  illu- 
minating gas  at  fifty  cents  per  thousand,  is  not  such  a  proposition 
worthy  consideration  ? 

I  reply,  that  this,  added  to  the  use  of  the  term  "fuel  gas,"  is  but 
additional  evidence  of  the  fraudulent  character  of  the  proposition,  for 
if  the  figure  named  is  honestly  intended  to  apply  to  genuine  "fuel 
gas,"  the  price  would  be  so  excessive  and  disproportionote  to  its  value 
that  no  market  could  be  found  for  their  product. 

And  if  it  is  named  for  the  purpose  of  making  you  believe  that  it 
might  apply  to  illuminating  gas  the  deception  is  conclusive,  for  the 
merest  novice  in  gas  making  knows  that  any  such  figure  would  not 
cover  the  cost  of  production  and  distribution,  to  say  nothing  about 
rendering  the  slightest  return  upon  the  capital  invested. 

Fearing  that  when  the  ordinance  reached  the  Council  and  passed 
under  the  scrutiny  of  honest  men,  the  "fuel  gas"  disguise  would  be 
torn  into  tatters,  by  the  testimony  of  competent  men  that 

SUCH   A  SCHEME  IS  UTTERLY  IMPRACTICABLE, 

they  have  "  hedged  "  by  naming  a  price  that  would  have  a  tendency 
to  impress  the  uninitiated  public  as  carrying  with  it  some  compensa- 
tion for  the  disadvantages  and  pecuniary  losses  which  would  inevitably 
follow  a  duplication  of  the  existing  gas  service  of  our  city  :  but  at  the 
same  time  carefully  guarding  themselves  by  the  insertion  of  a  clause 
limiting  such  price  to  the  period  of  five  years ;  well  knowing  that  if 
they  should  within  that  time  fail  in  efforts  to  again  have  the  price 
changed  to  a  higher  one,  they  could  reasonably  occupy  this  entire 
period  in  preparations  for  work,  and  never  send  out  a  single  foot  of 
gas  until,  by  such  limitation,  they  would  be  at  liberty  to  charge  what- 
ever price  might  be  deemed  advisable. 

Further  than  this,  gentlemen,  the  Supreme  Court  of  Ohio,  at  the 
December  term  of  1868,  rendering  its  opinion  upon  relations  of  the 
Gas  Company,  said: 

"  The  intention  of  the  Legislature  in  empowering  the  City  Councils  to  regu- 
late the  price  of  gas,  was  to  limit  incorporated  gas  companies  to  fair  and  rea- 
sonable prices  for  the  gas  which  they  might  furnish  for  public  or  private 

use. 


"If,  in  the  colorable  exercise  of  this  power  a  majority  of  the  members  of 
Council,  for  a  fraudulent  purpose  combine  to  pass  an  ordinance  fixing  the 
price  of  gas  at  a  rate  at  which  they  well  know  it  can  not  be  manufactured  and 
sold  without  loss,  such  an  ordinance,  so  fraudulently  passed,  xvoicld  impose  no 
obligation  on  the  gas  company  intended  to  be  affected  thereby T 

Is  it  not  within  the  knowledge  of  not  only  the  members  of  this 
Committee  and  of  the  City  Council,  but  of  every  citizen  of  any  in- 
telligence in  the  city  of  Cincinnati,  that  illuminating  gas  can  not  be 
made  and  sold  without  loss  at  any  such  figure  ?  Is  it  not,  therefore, 
clear  that — 

AFFIRMATIVE  ACTION  UPON  YOUR  PART  WOULD  IMPOSE  NO  OBLIGA- 
TION UPON  THE  QUEEN  CITY  COMPANY  TO  BE  GOVERNED  BY  THE 
PRICE  NAMED  ? 

Briefly,  the  amendment  now  before  you  provides  for  an  increase  in 
price  from  15  to  50  cents,  and  eliminates  from  the  original  the  require- 
ment that  a  main  shall  be  laid  from  the  gas  fields  before  advantage  can 
be  taken  of  the  alternative  provision  for  the  manufacture  and  distri- 
bution of — 

SO-CALLED  FUED  GAS, 

which  is  an  illusory  terrn,  used  in  this  connection  for  the  sole  and  only 
purpose  of  perpetuating  the  fraud  and  covering  up  the  real  purpose 
and  object  of  the  projectors. 

On  this  proposition  I  shall  base  my  argument,  and  call  your  atten- 
tion to  some  facts  that  may  serve  to  dispel  the  thought,  which,  in  this 
case,  is  but  father  to  the  wish,  that  it  is  practicable  to  make  and  de- 
liver a  distinctive  "  fuel  gas,"  or  gas  to  be  exclusively  used  for  fuel, 
at  a  price  which  would  warrant  its  purchase  and  general  use  for  man- 
ufacturing and  domestic  purposes. 

There  are  but  two  kinds  of  such  gases  now  known  to  science.  The 
first  and  lowest  in  point  of  efficiency  is  known  as 

PRODUCER  GAS, 

which  is  the  product  of  the  destructive  corbonization  of  the  lower 
grades  of  bituminous  coal,  but  more  frequently  of  coke  or  anthracite 
coal. 

There  are  probably  half  a  hundred  different  methods  of  accom- 
plishing this  purpose,  the  most  prominent  of  which  are  known  as  the 
Siemens,  Loomis,  Evans,  Egner  and  Smith,  each  of  which  claims  to 
possess  some  peculiar  advantage  over  its  rivals. 


26 


The  gas  thus  generated  is  of  the  same  character  as  that  produced 
in  the  furnaces  of  the  works  of  the  Gas  Company,  and  used  in  the 
carbonization  of  coal  for  the  production  of  illuminating  gas. 

The  following  analysis, 

Hydrogen  

Carb.  oxide... 
Carbonic  acid 
Nitrogen  

100 

showing  that  it  contains  but  73  heat  units  per  foot,  a  less  number  than 
any  other  gas  produced,  and  its  flame  temperature  is  so  low  that  it 
can  not  be  utilized  when  its  temperature  falls  below  5000,  and,  there- 
fore, while  it  can  be  used — and  in  some  cases  to  advantage — imme- 
diately over  or  adjoining  the  producing  chamber,  it  can  not  be  made 
to  retain  its  heat-giving  properties  when  transported  in  pipes — subject 
to  the  ordinary  changes  of  temperature  in  this  climate — for  a  distance 
of  more  than  two  or  three  hundred  feet. 

The  utilization  of  this  particular  character  of  gas  in  the  way  pro- 
posed is,  therefore,  out  of  the  question,  and  may  as  well  be  at  once 
dismissed  from  consideration  in  this  connection.    This  leaves 

UNCARBURETTED  WATER  GAS 

as  the  only  other  gas  which  can  be  properly  considered  a  "  fuel  gas," 
or  gas  possessing  heating,  and  not  illuminating,  properties.  It  is  pro- 
duced by  passing  superheated  steam  through  a  mass  of  incandescent 
carbon,  coke  or  hard  coal,  in  peculiarly  arranged  furnaces,  differing 
but  little  in  principle,  but  covered  in  many  instances  by  patents,  un- 
der which  the  various  processes  are  known  in  the  market  as  the  Low, 
Springer,  Granger,  Critchlow,  Loomis,  Flannery,  Hanlon,  McKay- 
Critchlow,  Martin,  Pratt,  Egerton,  Evans,  Tessie  de  Motay  and  other 
processes,  differing  but  slightly  in  any  essential  particular;  all  simply 
producing  a  chemical  change  by  decomposing  the  steam ;  the  oxygen 
combining  with  the  carbon  forming  the  poisonous  compound— car- 
bonic oxide— which  passes  on  with  the  liberated  hydrogen  in  the  form 
of  fixed  gas. 

This  gas  is  transportable  within  reasonable  limits,  but  its  cost  of 
production  and  low  heating  power,  as  compared  with  that  of  ordinary 
illuminating  gas,  is  such  as  to  render  it  either  merchantable  or  serv- 
iceable only  under  peculiar  and  exceptional  conditions. 


2 
20 
3 

•7  C 


27 


There  is  another,  a  sort  of  mongrel  process,  known  as  the  improved 
Loomis  process,  which  has  not  been  entirely  unsuccessful  in  forming 
a  combination  of  these  two  gases,  but  as  the  addition  of  the  producer 
gas  would  in  such  a  case  as  that  contemplated  be  of  no  advantage,  but 
rather  a  detriment  to  its  commercial  value,  we  need  give  the  process 
no  special  consideration — further  than  to  say  that  it  contains  by 
analysis  249  heat  units  per  foot. 

The  following  is  a  complete  analysis  of  the  uncarburetted  water-gas : 


Hydrogen  •  50 

Carb.  oxide  :   40 

Carb.  acid     5 

Nitrogen   4 

Oxygen   1 


Total   100 

Which,  being  reduced  to  plain  and  generally  recognizable  terms, 
means  that  it  contains  but  290  heat  units  per  foot — 
While  the  following  analysis  : 

Hydrogen   46.0 

Marsh  gas       40.0 

Carb.  oxide   6.0 

Olificent  gas   4.0 

Carb.  acid   0.5 

Nitrogen    

Oxygen    0.5 

Aq.  vapor   T ,  5 


Total   100.0 


shows  that  ordinary  coal,  or  illuminating  gas,  contains  735  heat  units 
per  foot. 

For  the  purpose  of  further  comparison,  we  here  insert  an  analysis 
of  natural  gas : 


Hydrogen   2.i8 

Marsh  gas   g2.6o 

Carb.  oxide   0*50 

Olificent  gas   °-3i 

Carb.  acid   ,   0.26 

Nitrogen   3.6i 

Oxygen   0.34 

Sulphide   0.20 


28 


Showing  that  it  contains  1,000  heat  units  per  foot,  and,  therefore,  of 
all  the  gases  known  it  is  the  most  powerful  and  valuable  for  heating 

purposes. 

Thus,  by  incontrovertible  chemical  analysis,  the 

COMPARATIVE  VALUES  OF  THESE  GASES, 


1.  Natural  gas   1,000 

2.  Coal  gas   735 

3.  Water  gas   290 

4.  Loomis  gas  .   249 

5.  Producer  gas   73 


the  first  being  that  drawn*  from  the  Pittsburg  fields;  the  second, 
the  coal  gas  now  being  delivered  in  this  city;  the  third  being  the  same 
as  that  first  produced  over  the  river  at  Bellevue,  Ky.;  the  fourth, 
same  as  that  now  being  supplied  at  Addyston ;  and  the  fifth,  such  as 
is  being  made  at  the  Globe  Rolling  Mill  in  this  city. 

In  a  paper  on  ''Fuel  Gas,"  recently  read  before  the  Western  Gas 
Association,  at  Toledo,  by  Chas.  R.  Faben,  Jr.,,  a  water-gas  man,  I 
find  the  following : 

"  Recognizing  the  differences  of  opinion,  the  only  comparison  left  for  a 
practical  person  is  to  make  a  comparison  between  existing  fuel  gases. 

"  From  figures  now  before  us,  made  by  scientific  persons,  I  find  the  fol- 
lowing : 

RELATIVE   VALUE   BY  VOLUME. 


Natural  gas   100 

Coal  gas   68 

Water  gas,  plain   29 

Producer  gas  t   13 


"  In  other  words,  if  a  man  were  to  pay  $1  per  thousand  for  natural  gas,  65 
cents  per  thousand  for  coal  gas,  29  cents  per  thousand  for  plain  water  gas,  or 
13  cents  per  thousand  for  producer  gas,  it  would  be  an  even  thing  with  him, 
no  matter  which  kind  of  gas  he  concluded  to  take. 

Until  the  time  arrives  that  a  sufficient  quantity  of  the  kind  of  gas  now  fur- 
nished consumers  for  lighting  purposes  is  utilized  and  required  for  fuel  pur- 
poses, the  project  of  a  distinctive  fuel  gas  company  is  fanaticism.  I  repeat, 
the  more  common  use  of  gas  for  fuel  purposes  is  the  true  doctrine  ;  but  the 
fuel  gas  as  at  present  presented  by  the  fuel  gas  enthusiasts  is  fanatical  error.'' 

But  fearing,  gentlemen,  that  you  may  not  fully  comprehend,  or 
have  that  absolute  confidence  in  analytical  results  which  all  scientific 
and  professional  men  have,  I  will  add  to  this  a  few  extracts  from  the 
testimony  of  practical  men  deduced  from  actual  tests  and  experi- 
ments. 


29 


Prof.  S.  A.  Ford,  of  the  Edgar  Thomson  Steel  Works,  whose  pro- 
fessional duty  it  is  to  determine  the' calorific  value  of  all  fuels  used  in 
that  mammoth  establishment,  has  made  a  full  and  exhaustive  report 
upon  the  subject,  which  may  be  found  in  the  Scientific  American  of 
June  12,  1886.  The  details  are  too  voluminous  to  be  given,  but  the 
following  summary  will  prove  interesting : 

"  We  find  that  54  4-10  pounds  of  coal  is  equal  in  its  heating  power  to  1,000 
cubic  feet  of  natural  gas. 

"If  our  coal  costs  us  $1.20  per  ton  of  2,000  pounds,  1,000  cubic  feet  of  nat- 
ural gas  possesses  a  value  of  cents. 

"  If  the  price  of  coal  is  $2.50  per  ton,  1,000  cubic  feet  of  natural  gas  will  be 
worth  6  8-10  cents  per  thousand  cubic  feet." 

Emerson  McMillen,  a  gas  and  mining  engineer  of  national  reputa- 
tion, and  the  author  of  one  of  the  most  valuable  and  interesting 
papers  on  natural  gas  ever  written,  says : 

It  has  been  found  through  a  series  of  experiments  that  23^  feet  of  natural 
gas  will  evaporate  20.31  pounds  of  water.  These  results  show  that  1,000  feet 
of  natural  gas  will  do  about  the  same  service  as  \%  bushel  of  Youghiogheny 
coal." 

James  Summerville,  engineer  of  the  Indianapolis  Natural  Gas  Com- 
pany, in  a  communication  published  in  Light,  Heat,  and  Power,  ot 
January  31,  1889,  says: 

"  I  wish  to  say  that  the  fact  is  that  my  statement  that  it  takes  but  26,000 
cubic  feet  of  natural  gas  to  do  the  work  of  a  ton  of  coke  or  coal  is  not  based 
on  information,  but  from  direct  experiment  which  is  going  on  before  me 
every  day." 

1  D.  S.  Jacobins,  mechanical  engineer  of  distinguished  reputation,  in 
a  paper  read  before  the  Institute  of  American  Mining  Engineers,  gives 
the  following  tabulated  statement  of  the  relative  moneyed  values  of 
uncarburetted  water  gas,  as  compared  with  coal,  as  deduced  from  his 
experiments : 

"Per  M. 


When  coal  is  $5  per  ton,  this  gas  is  worth  6^c. 

When  coal  is  $5  per  ton,  this  gas  is  worth  5  4-ioc 

When  coal  is  $4  per  ton,  this  gas  is  worth  4  4-ioc. 

When  coal  is  $3  per  ton,  this  gas  is  worth  3  3-ioc. 

When  coal  is  $2  per  ton,  this  gas  is  worth  2  2-ioc. 

When  coal  is  $1  per  ton,  this  gas  is  worth  1  i-ioc." 


The  Westinghouse  Air-Brake  Company,  of  Pittsburg,  reports  the 
results  of  their  experiments,  as  follows : 


30- 


"  Taking  the  best  quality  of  Pittsburg  coal,  it  was  found  that  its  evaporating 
duty  in  a  particular  boiler  was  10.38  pounds  of  water  per  pound  of  solid  fuel. 
With  the  same  boiler,  1-18  cubic  feet  of  natural  gas  evaporated  one  pound  of 
water.    Thence  it  follows  that  one  pound  of  coal  was  equivalent  to  [2.25  cubic 

feet  of  gas. 

"  Or  that  1,000  cubic  feet  of  gas  were  equal  to  81  32-40  pounds  of  coal." 

Prof.  Lewis,  State  Geologist  of  Pennsylvania,  officially  repor-ts  from 
experiments  made  that  it  requires  30,000  cubic  feet  of  natural  gas  to 
do  the  work  of  one  ton  of  coal. 

Averaging  these  results,  and  it  is  plainly  seen  that  it  will  require 
1,000  cubic  feet  of  natural  gas  to  equal  the  efficiency  of  71.6  pounds — 
or  one  bushel — of  the  very  best  Youghiogheny  coal. 

So  that  under  all  ordinary  conditions  the  use  of  this  gas,  at  even 
fifteen  cents  per  thousand,  would  prove  nearly  three  times  as  expensive 
as  slack  coal  at  $1.50  per  ton. 

BUT  NOW,  GENTLEMEN,  REMEMBER,  IF  YOU  PLEASE, 

that  we  have  already  shown  you  that  this  so-called  "fuel  gas"  con- 
tains but  290-1,000 — or  but  little  aver  one-fourth — the  heat-giving  prop 
erties  of  natural  gas,  and  you  will  have  no  difficulty  in  comprehend- 
ing that  it  will  require  the  use  of  124,140  cubic  feet  of  this  so-called 
"fuel  gas"  to  equal  in  efficiency  one  ton  of  coal.  Multiply  this  num- 
ber of  feet  by  fifty  cents — the  price  fixed  by  this  ordinance — and  you 
will  find  that  to  enjoy  the  privilege  of  using  this  gas,  the  consumer 
will  have  to  pay  for  his  heat  an  equivalent  of  $62.07  per  ton  of  coal. 
Or,  incredible  as  the  statement  may  now  appear,  its  use  at  the  price 
named  would  prove 

OVER    FORTY  TIMES  AS   EXPENSIVE  AS   SLACK  COAL 

at  five  and  a  half  cents  per  bushel. 

CAN  ANY  THING  ON  EARTH  MORE  PLAINLY  SHOW  THE  UTTER  RIDICU- 
LOUSNESS AND  ABSURDITY  OF  THIS  TALK  ABOUT  THE  VALUE  OF  A  DIS- 
TINCTIVE AND  DISTRIBUTABLE  "FUEL  GAS?" 

M.  S.  Greenough,  former  Engineer  of  the  Boston  Gas  Company,  is 
known  by  the  profession  to  be  one  of  the  most  thoroughly  posted  men 
in  his  line  in  this  country.  His  association  with  and  employment  by 
the  syndicate  engaged  in  the  introduction  of  water  gas  systems  enti- 
tles his  views  to  more  than  ordinary  weight.  His  advice  being  solic- 
ited in  regard  to  the  establishment  of  a  small  plant  atWaltham,  Mass., 
replied : 

"That  while  an  experiment  in  the  supply  of  'fuel  gas'  at  Waltham  would 
be  interesting  and  valuable  to  gas  engineers,  I  can  not  recommend  it  from  any 


31 


example  of  a  similar  enterprise  carried  on  successfully  and  profitably  in  any- 
other  city  in  this  country. 

"  Many  people  consider  it  as  one  of  the  questions  of  the  immediate  future. 

"At  present  there  is  but  one  place  in  the  country  where  the  experiment  is 
being  tried — where  it  is  being  sold  at  from  thirty  to  fifty  cents  per  thousand, 
and  it  is  obvious  competition  is  over  done  and  .money  being  lost. 

"For  use  in  heating  f  urnaces,  even  at  the  lower  rate,  it  can  not  be  econom- 
ically used  in  competition  vjith  coal,  being  about  one-third  more  expensive. 

"At  the  same  time,  as  long  as  a  new  method  of  doing  any  work  whatever 
has  not  yet  attained  the  position  of  earning  dividends,  it  can  only  be  regarded 
in  the  light  of  an  experiment,  and  I  can  not  say  that  I  have  sufficient  faith 
myself  in  its  continued  pecuniary  success  to  warrant  its  introduction  at 
Waltham." 

The  same  gentleman  also  consulted  another  gas  expert  and  engi- 
neer, Robert  Young,  Engineer  and  Superintendent  of  the  Pittsburg 
Company,  who  replied  as  follows : 

"Yours  of  the  28th  came  to  hand,  and  contents  noted. 

"  My  advice  to  you  is  not  to  spend  any  money  in  the  '  fuel  gas '  business  at 
present;  that  is,  outside  of  what  you  can  do  in  the  way  of  introducing  coal 
gas  for  fuel;  you  can  sell  it  just  as  cheap  for  the  amount  of  heat  it  will  pro- 
duce as  any  fuel  gas  ever  made. 

"  I  have  given  the  fuel  gas  question  considerable  study,  and  so  far,  even 
with  the  experience  I  have  had  with  natural  gas,  I  have  not  been  able  to  con- 
vince myself  that  I  can  make  a  fuel  gas,  and  deliver  it  to  consumers  through- 
out the  city,  and  sell  it  at  a  price  that  would  justify  them  in  using  it  with  any 
hopes  of  financial  success  to  the  company. 

In  a  recent  interview  with  President  Knapp,  of  the  Equitable  Gas 
Company,  of  Chicago,  in  answer  to  the  question,  "As  a  practical  gas 
manufacturer,  how  cheaply  do  you  think  fuel  gas  can  be  manufac- 
tured, he  said : 

"  I  don't  know,  and  I  don't  think  any  body  else  does.  It  all  depends  upon 
the  quantity  in  which  it  is  manufactured.  You  will  find  men  who  swear  that 
'fuel  gas  ' — that  is,  plain  water  gas — can  be  made  for  ten  cents  per  thousand. 
I  don't  believe  it.  If  fuel  gas  were  here  in  Chicago  to-dav,  and  people  used 
as  much  of  it  as  they  do  illuminating  gas,  I  do  not  believe  it  could  be  made 
and  sold  at  a  profit  for  fifty  cents  a  thousand. 

Emerson  McMillen,  now  president  of  the  St.  Louis  Consolidated 
Gas  Company,  has  always  been  an  enthusiast  upon  the  subject  of 
"fuel  gas,"  and  has  longed  for  an  opportunity  of  testing  the  practica- 
bility of  supplying  it  with  satisfaction  to  his  consumers  and  profit  to 
himself. 

When  the  consolidation  was  effected  in  that  city  it  left  on  the  hands 


32 


of  the  syndicate  the  works  of  the  United  Gas  Improvement  Com- 
pany's opposition  water-gas  plant,  with  its  independent  lines  of  mains 
extending  through  the  most  profitable  gas-consuming  districts  of  the 
city.  While  this  plant  originally  cost  nearly  $1,000,000,  it  was  a 
works  for  which  the  consolidation  had  no  immediate  use. 

This  was  McMillen's  opportunity,  and  he  determined  to  utilize  it  as 
a  fuel  gas  station.  With  a  great  flourish  of  trumpets  and  much  adver- 
tising, uncarburetted  gas  was  turned  into  its  mains  on  the  14th  of  last 
July,  Mr.  McMillen  saying,  when  interviewed  at  the  time: 

."As  I  said,  there  remains  now  only  the  question  of  getting  enough  custom- 
ers at  40  cents  per  thousand  to  make  the  manufacture  profitable;  we  have 
probably  6,500  to  7,000  consumers  along  the  mains  already  laid  from  these 
works;  if  we  get  one- half  of  these  we  will  feel  encouraged  to  go  ahead.  Of 
course,  many  people  will  be  only  too  glad  to  get  fuel  gas.  I  am  glad  St. 
Louis  is  to  be  the  first  place  to  try  it  on.  There  is  one  town — Jackson,  Mich. 
— where  they  use  fuel  gas,  but  it  is  too  small  to  determine  the  question  of 
practicability  one  way  or  the  other. 

"  The  first  experiment  of  a  sufficient  commercial  scale  will  be  made  right 
here  in  St.  Louis." 

The  sequel  has  been  made  public  through  the  following  editorial, 
which  appeared  in  the  American  Journal  but  two  weeks  ago,  headed 

"FAILURE  of  fuel  gas  SCHEME  AT  ST.  LOUIS. 

"  Some  time  ago  we  announced  that  President  McMillen,  of  St.  Louis,  had 
determined  to  try  the  experiment,  on  a  large  scale,  of  distributing  fuel  gas  in 
that  city,  and  the  results  were  eagerly  looked  forward  to. 

"  In  the  first  place,  McMillen  was  very  well  pleased  to  make  the  experi- 
ment, in  that  his  company  has  acquired  by  purchase  the  plant  and  mains  of 
the  Water-Gas  Company,  and,  further,  he  was  as  well  up  in  the  theory  and 
practice  of  fuel  gas  supply  as  any  other  man  in  the  country.  It  was  intended 
to  supply  the  non-carburetted  water-gas  at  a  very  low  rate,  and  the  scheme 
was  to  have  been  initiated  on  July  1. 

"The  supply  was  tur?ied  on  July  14///,  only  to  be  discontinued  on  the  30th 
of  the  same  month." 

But  sixteen  persons  could  be  induced  to  make  application  for  the 
gas,  and  all  but  one  of  these  discontinued  its  use  before  the  end  of 
the  month. 

The  works  have  been  torn  down  and  the  apparatus  is  being  dis- 
mantled, and  all  that  can  not  be  used  in  making  coal  gas  has  been 
-sent  to  the  scrap  pile. 

In  referring  to  this  failure,  the  editor  of  the  Journal  adds  <: 

■"  The  failure  at  Louisville,  where  the  initial  conditions  were  quite  similar  to 


33 


those  at.  St.  Louis,  followed  so  closely  by  a  like  ending  at  the  latter  place, 
only  emphasizes  the  position  taken  by  the  Journal  in  respect  to  the  problem 
of  a  fuel  gas  -apply. 

"We  have  always  believed  that  its  solution  lies  in  an  intelligent  use  of  il- 
luminating gas  for  both  lighting  and  cooking  purposes." 

The  similarity  of  conditions  to  which  the  editor  refers  was  the  pos- 
session of  an  "opposition"  or  competing  water-gas  works,  with  its 
duplicate  set  of  mains,  etc.,  for  which  the  old  company  had  no  use, 
but  which — as  the  inevitable  result  of  a  competition  struggle — they  had 
to  buy  and  charge  the  expense  to  the  consumer. 

After  these  failures  to  secure  sufficient  custom  to  warrant  the  con- 
tinuance of  the  manufacture  of  a  "fuel  gas,"  they  entered  into  an 
agreement  to  supply  such  customers  as  desired  a  distinctive  fuel  gas, 
with  illuminating  coal  gas,  through  separate  meters,  at  one  dollar  per 
thousand,  which  proved  much  more  satisfactory  to  the  consumer  and 
profitable  to  the  company. 

In  view  of  the  disastrous  failure  of  the  "fuel  gas"  scheme  at  St. 
Louis,  the  following  extract  from  an  article  in  the  American  Journal, 
February  17,  1890,  may  well  be  accepted  as  "corroborative  evi- 
dence :" 

iL  Certain  speculators  who  are  attempting  to  secure  a  franchise  for  the  ope- 
ration of  a  fuel  gas  plant  in  St.  Louis  propose  to  work  under  the  Brazelle 
process. 

"in  support  of  their  scheme  they  allege  that  this  process  was  in  successful 
operation  at  the  works  of  the  Paris  (111.)  Gas-light  and  Coke  Company. 

"  The  president  of  that  company,  when  interrogated  upon  the  measure  of  suc- 
cess that  had  been  gained  in  its  operation,  said  :  'The  process  was  installed  at 
our  works,  operated  experimentally  for  about  eight  months,  and  then  supplied 
to  the  city  for  about  three  months  longer.  Their  representations  were  so 
plausible  that  we  were  induced  to  enter  upon  its  manufacture  and  distribution. 

"  •  We  were  speedily  obliged  to  give  the  plan  up,  as  it  was  too  expensive  and 
uncertain. 

"' It  was  not  even  a  partial  success.  Though  Mr.  Brazelle  claimed  to  be 
able  to  make  60,000  cubic  feet  per  ton,  he  never  did  make  over  11.000,  and 
often  not  more  than  9,000  feet,  and  this  a  gas  of  no  illuminating  power  what- 
ever, and  of  far  less  heating  value  than  the  coal  gas  formerly  used. 

Of  course  with  this  process  we  saved  no  tar  or  coke,  and  the  gas  was 
consequently  far  more  expensive  than  coal  gas. 

" '  For  steam  raising  and  the  more  extended  use  of  fuel  it  would  not  do  at 
all.' " 

About  three  years  ago  a  so-called  fuel  gas  plant  was  established  in 
Troy,  N.  Y. 
3 


34 


Its  young  life  was  nipped  in  the  bud  by  a  disclosure  of  the  poison- 
ous nature  of  the  character  of  the  stuff  distributed,  as  indicated  in 
the  following  dispatch  under  date  of  January  17,  1887  : 

"Dispatches  from  Trov,  X.  Y..  were  well  calculated  to  attract  wide-spread 
attention,  but  the  notoriety  secured  was  gained  at  most  painful  expense. 

"  Three  persons  were  destroyed  when  seemingly  engaged  in  ordinary  con- 
versation, while  over  a  score  of  others  w  ere  more  or  less  severely  prostrated, 
and  once  the  wheels  of  investigation  were  placed  in  motion,  the  cause  of  all 
this  suffering  was  traced  to  an  accidental  inhalation  of  the  fuel  water  gas  dis- 
tributed from  the  works  of  the  Trov  Fuel  Gas  Company,  and  the  most  aston- 
ishing feature  of  the  case  is  that  the  houses  where  these  fatalities  occ  urred 
were  not  piped  for  this  gas,  hut  the  poisonous  compound  had  escaped  from  a 
broken  main  some  distance  away,  and  passed  through  the  intervening  earth  in 
the  houses,  where,  it  being  an  odorless  gas,  its 'presence  was  not  suspicioned 
until  after  the  fatalities  occurred." 

This,  and  financial  embarrassment,  brought  its  life  to  a  sudden  end, 
and  the  people  who  knew  it  once,  thankfully  now  know  it  no  longer. 
In  this  connection,  it  is  not  uninteresting  to  note  the  admission  made 
by  Mr.  Loomis  himself  during  a  discussion  of  the  "fuel  gas"  ques- 
tion before  the  Western  Gas  Association  one  year  ago  : 

"Of  course,  I  have  my  own  views  about  it,  as  I  have  been  interested  in  the 
matter  for  a  number  of  years,  and  have  accomplished  some  results  which  are 
satisfactory  to  myself.  In  the  first  place,  in  order  to  be  a  success  fuel  gas 
must  be  made  and  sold  cheaply.  There  may  he  differences  of  opinion  as  to 
what  that  figure  may  be.  I  was  interested,  as  some  of  you  know,  with  Prof. 
Lowe  in  his  series  of  experiments  at  Lynn,  where  we  were  making  '  fuel  gas' 
and  selling  it  at  50  cents  per  thousand.  At  that  price,  for  some  purposes — 
for  gas  engines  and  for  cooking — it  was  cheaper  than  coal  used  in  the  same 
way;  but  for  heating  purposes  it  was  not  as  cheap  as  coal.  In  fact,  coal  was 
considerably  the  cheaper.  We  found,  as  the  result  of  our  experiments,  with 
coal  at  the  prices  for  which  it  was  selling  in  New  England,  that  '  fuel  gas  1 
must  be  sold  certainly  as  low  as  25  cents  per  thousand  to  make  it  a  commod- 
ity that  the  people  would  use;  even  at  that  price,  for  some  purposes,  it  is 
dearer  than  coal." 

And  now  let  us  add  that  here,  as  in  other  places  where  the  enthusi- 
asm of  the  inventor,  with  a  "patented  process,"  has  led  to  the  intro- 
duction of  this  ignis  fatuus,  the  "fuel  gas"  has  shed  its  coat  and 
bloomed  forth  into  a  full-fledged  illuminating  water  gas  company. 

So,  also,  has  passed  into  oblivion  the  scheme  of  a  "  fuel  gas  "  sup- 
ply at  Los  Angeles,  Cal.,  where  our  friend  Lowe  painted  in  such  glow- 


35 


ing  colors  the  beauties  of  his  system,  that  the  works  were  built,  busted 
and  turned  into  a  purely  illuminating  gas  company,  all  within  a  period 
of  about  six  months. 

These  patent-process,  "fuel-gas'  men  occasionally  take  pleasure 
in  referring  to  the  fact  that  a  plant  of  this  character  has  been  estab- 
lished at  Terre  Haute,  Ind.,  causing  an  inquiry  into  the  character  of 
that  enterprise. 

A  recent  inquiry  of  Prof.  Noyes,  of  the  Rose  Polytechnic  Institute, 
of  that  city,  elicited  the  following  information  : 

"It  has  less  than  half  the  heating  power  of  natural  gas;  sold  at  30  cents 
per  thousand,  which  is  equivalent  to  $17  per  ton  for  coal.  Contains  35  grains 
of  sulphur  in  100  cubic  feet,  and  in  its  present  state  is  therefore  not  suited  for 
use  for  illuminating  purposes,  or  for  use  in  gas  stoves  where  the  products  of 
combustion  escape  into  the  air  of  living  rooms." 

To  which  we  add  that  this  company  has  been  distributing  this  pois- 
onous compound  for  four  or  five  months,  and  now  has  but  twenty-two 
consumers,  eight  of  whom  are  stockholders. 

As  we  have  seen  an  occasional  reference  to  a  little  plant  of  this 
character  at  Jackson,  Mich.,  the  expressed  opinion  of  Mr.  Harbeson, 
engineer  of  the  Hartford  (Conn.)  Company,  who  is  familiar  with  its 
operations,  may  prove  interesting  : 

•  A  company  there  is  furnishing  fuel  gas  and  selling  it  at  30  to  40  cents  per 
thousand,  and  yet  it  is  admitted  by  the  manager  of  that  works  that  they  have 
never  made  a  dollar,  but  upon  the  contrary  that  they  have  lost  a  great  deal  of 
money  in  their  efforts  to  introduce  it,  and  have  not  _yet  been  able  to  pav  a  sin- 
gle cent  on  their  capital.  Other  companies  selling  it  at  50  cents  per  thousand 
have  gone  into  bankruptcy. 

"The  country  has  been  sufficiently  flooded  well  and  long  with  statements 
that  -vill  not  bear  the  light  of  day." 

The  most  recent  venture  of  this  character,  and  the  one  to  which 
these  water-gas  enthusiasts  now  most  frequently  refer,  is  at  Akron,  O.. 
where  gas  is  manufactured  under  what  is  knowrn  as  the  Loomis  process. 

The  capital  invested  was  $125,000,  the  majority  of  which  is  held 
by  non-residents,  the  president  being  a  citizen  of  Detroit.  Their  de- 
liveries, including  that  used  for  illuminating  purposes  in  connection 
with  the  Wellsbach  burners,  are  from  50,000  to  60,000  cubic  feet  per 
day  to  50  consumers,  a  majority  of  whom  are  stockholders,  which,  if 
sold  at  50  cents,  would  make  the  gross  income  of  the  establishment 
from  $25  to  $30,  which  would  not,  in  my  judgment,  defray  the  cost 


3G 

of  production.  Considerable  expense  was  incurred  in  laying  service 
mains  to  the  Buckeye  Reaper  and  Mower  Works,  to  the  Withlow- 
Barnes  Manufacturing  Company,  to  the  Akron  Stoneware  Company, 
located  at  a  distance  of  only  150  feet  from  the  works,  and  other 
places,  but  all  were  failures  and  the  use  of  gas  abandoned. 

They  have  even  abandoned  the  use  of  (he  gas  under  their  own  boilers  and 
substituted  slack  coal.  The  old  coal  gas  company,  by  selling  their  pro- 
duct at  $1.40  per  thousand,  have  no  difficulty  in  controlling  the  cus- 
tom for  heating  as  well  as  illuminating  purposes. 

The  almost  universally  expressed  opinions  of  most  intelligent  citi- 
zens is  that  the  enterprise  is  a  failure. 

But,  gentlemen,  we  are  fortunate  in  having  in  our  immediate  vicin- 
ity a  monument  to  the  gentlemen  who,  I  understand,  are  engaged  with 
our  friend  Mr.  Baker  in  efforts  to  confer  upon  this  community  the  in- 
estimable boon  they  conferred  upon 

bEllevue,  kv., 

where,  two  years  ago,  assisted  by  some  Chicago  parties,  they  erected 
a  "fuel  gas"  works,  consisting  of  a  brick  building  50x25  feet,  with 
a  holder  25  feet  in  diameter  and  12  feet  deep,  having  a  maximum  ca- 
pacity of  6,000  cubic  feet,  with,  at  the  time  they  were  making  "fuel 
gas,"  a  maximum  consumption  of  3,000  feet  per  night. 

The  price  they  charged  was  fifty  cents  per  thousand  cubic  feet,  and 
their  gross  income  did  not  at  that  time  exceed  one  dollar  and  a  half 
per  day.  As  near  as  I  could  estimate,  the  whole  plant  would  cost 
less  than  $1 0,000,  but  on  this  estimate  these  enterprising  gentlemen 
had  issued  $100,000  in  stock  and  $100,000  in  bonds,  and  the  latter 
were  placed  in  the  hands  of  Eustis  &  Co.  for  sale  to  Cincinnati 
suckers.  They  supplied  this  fuel  gas  to  four  consumers,  three  of 
whom  were  interested  in  the  company,  and  five  or  six  public  lamps. 
A  main  was  also  laid  from  the  works  to  the  Addy  Pipe  Works — by  the 
latter  company — but  under  an  agreement  that  they  were  to  receive 
their  gas  at  twenty-five  cents.  The  whole  thing  completely  petered 
out  in  less  than  six  months,  and  was  changed  into  an  illuminating 
water  gas  works,  for  the  production  of  which  they  are  now  charging 
$1.75  per  thousand. 

As  absurd  and  ridiculous  as  this  whole  thing  appears  to  those  who 
possess  a  knowledge  of  its  true  inwardness,  nevertheless  it  was  most  ex- 
tensively advertised  throughout  the  country  as  a  successfully  operated  '  'fuel 
gas  "  plant. 

To  confirm  or  refute  such  statements  made  at  Cleveland,  the  dis- 
tinguished chemist,  Morley,  was  twice  sent  to  Bellevue,  but  was  each 


37 


time  not  only  refused  opportunity  of  making  a  test,  but  was  by  one 
of  the  officials  of  that  con  em  ordered  from  the  premises  of  a  private 
consumer,  whose  permission  had  been  obtained  to  make  the  desired 
examination. 

The  following  is  a  copy  of  his  report : 

"  Cleveland,  O.,  November  23,  1887. 

"  Dear  Sir — I  have  recently  been  twice  to  determine  the  heating  power 
of  the  water  gas  made  at  Bellevue,  Ky.,  but  upon  neither  occasion  was  I  al- 
lowed to  make  any  test. 

"  I  have  computed  the  heating  power  of  the  water  gas,  of  which  an  analysis 
was  submitted  to  the  Board  of  Public  Improvements  by  a  Committee  who 
visited  Bellevue,  and  also  of  the  gas  furnished  by  your  company  according  to 
my  own  analysis. 

"  The  heating  power  of  the  water  gas  is  forty-eight  per  cent  of  that  of  your 
coal  gas.    Very  respectfully,  Edward  W.  Morley." 

Being  further  interrogated  in  regard  to  the  safety  of  this  uncarbu- 
retted  water  gas,  he  replied  as  follows : 

"  This  water  gas  contains  seventeen  times  as  much  carbonic  oxide  as  coal 
gas,  and  is  very  poisonous.  In  experimenting  upon  its  action,  Prof.  Letherby 
found  that  birds  were  killed  in  about  three  minutes  on  breathing  air  contain- 
ing one  part  of  carbonic  oxide  in  200  parts  air. 

"  The  danger  is  greatly  multiplied  by  the  fact  that  water  gas  is  practically 
odorless,  so  that  one  has  no  warning  of  the  escape  of  the  gas  into  a  room." 

In  the  light  of  the  methods  sought  to  be  accomplished  under  this 
ordinance,  the  following  is  quoted  from  the  Waltham  Tribune,  of  July 
1,  1889,  as  showing  how  "history  repeats  itself:" 

"  The  developments  of  last  night's  hearing  before  the  Committee  on  Light, 
regarding  the  '  fuel  gas '  ordinance,  go  far  to  show  that  in  reality  it  is  but  an 
effort  of  the  Bay  State  Company  to  follow  its  policy  of  absorbing  the  local 
company.  But  the  facts  are  that,  instead  of  gaining  a  title  by  right  of  pur- 
chase.under  four  conditions,  they  are  seeking  a  chance  to  wreck  the  company 
through  the  means  of  a  fuel  gas  franchise  of  value,  never  to  be  used  except 
for  that  purpose,  which  places  their  petition  in  such  a  light  as  to  make  its 
withdrawal  a  matter  of  course." 

Or,  from  the  Journal  of  same  date : 

"  Certain  speculators,  represented  by  a  party  named  Wm.  S.  Crosbv,  have 
appeared  before  the  St.  Joseph  (Mo.)  Council  with  a  petition  to  operate  a 
4  fuel  gas 1  plant. 

'-This  is  the  same  [joker'  that  is  now  so  well  recognized  in  the  west,  crop- 
ping out  so  frequently  of  late  at  divers  points  in  that  section.  'Crosby,  his 
heirs  or  assigns,'  propose  to  follow  the  Jackson  plan,  unless  the  St.  Joseph  Gas 
Company  shall  become  one  of  their  'heirs  or  assigns/" 


38 


But,  gentlemen,  small  and  unimportant  as  these  experiments  were, 
and  failures  as  they  have  been,  remember  that  in  no  sense  do  they 
illustrate  what  the  applicants  for  this  franchise  would  have  you  infer. 
For,  with  the  single  exception  of  the  short-lived  St.  Louis  experiment, 
not  one  of  these  concerns 

EVER  PRETENDED  THAT  THEY  WOULD  MANUFACTURE  "  FUEL  'IAS  "  FOR 
HEATING  PURPOSES  ONLY.  EVERY  ONE  OF  THEM  WAS  IN  FACT  AN  II.- 
LUMINATING  GAS  COMPANY,  SIMPLY  USING  THIS  CHARACTER  OF  GAS 
TO  IMPART  LUMINOSITY  TO  EITHER  THE  "  FAHNEHJEIM  "  OR  "  WELLS 
BACH  "  BURNERS,  AND  THE  SUPPLY  OF  GAS  EXCLUSIVELY  FOR  HEAT- 
ING OR  MECHANICAL  PURPOSES  WAS  BUT  A  MERE  INCIDENT  TO  THE 
BUSINESS. 

A  failure  not  only  as  to  the  supply  of  heating  gas,  but  also  in  the 
use  of  such  burners,  for,  with  scarcely  an  exception,  the  incandescent 
burners  have  been  abandoned  and  the  product  changed  into  a  pure 
illuminating  gas. 

The  only  genuine  and  honest  effort  ever  made  in  the  United  States, 
and,  so  far  as  I  am  advised,  in  the  whole  world,  for  the  establishment 
of  a  plant  for  the  production  of  a  gas  to  be  used  for  heating  purposes 
only,  was  that  undertaken  by  the  St.  Louis  consolidated  companies, 
under  the  exceptionally  favorable  circumstances  of  having  in  their 
possession  a  magnificent  works,  complete  generating  apparatus,  and 
independent  lines  of  mains  reaching  out  in  every  direction  throughout 
the  most  populous  district  of  the  city ;  a  works  costing  over  a  million  dol- 
lars, and  which,  if  not  so  utilized,  would  have  to  be  abandoned,  gave 
them  the  immense  advantage  of  operating  without  the  investment  of 
capital,  enabling  them  to  charge  but  forty  cents  per  thousand ;  but  at 
which  price — for  the  simple  reason  that  it  was  not  worth  it — they  were 
able  to  induce  but  fourteen  persons  to  apply  for  its  introduction,  and 
at  the  end  of  the  first  month  thirteen  discontinued  its  use,  leaving 
them  but  one  consumer  to  take  the  supply  from  a  works  capable  of 
furnishing  ten  thousand. 

THIS  FRAUDULENT  SCHEME  IS  BEING   WORKED  ELSEWHERE, 

as  evidenced  by  the  following  extract  from  an  editorial  in  the  New 
Orleans  Times-Democrat  of  the  27th  of  last  Novembei  . 

"A  Committee  of  Council  has  had  before  it  for  some  weeks  past  an  or- 
dinance granting  to  a  number  of  gentlemen  the  privilege  of  selling  '  fuel ' 
or  cooking  gas  and  laying  mains  through  the  streets. 


39 


'"The  ordinance  is  a  very  plausible  one  at  first  sight,  and  it  is  probable 
that  a  great  many  people  thought  it  an  excellent  idea  to  encourage  the 
establishment  of  the  company. 

"If,  however,  the  matter  is  examined  into  thoroughly  and  carefully,  it  will 
appear  in  quite  a  different  light. 

"  We  have  a  gas  company  already  whose  gas  can  be  advantageously  used 
for  fuel,  being  of  far  greater  heating  power  than  the  new  company  propose 
to  furnish.  'But,'  says  the  average  citizen  when  this  is  called  to  his  at- 
tention, 'why  not  have  another;  the  more  companies  the  merrier;  the  new 
one  can  not  compete  with  the  old  one  in  illuminating  gas,  for  this  is  pro- 
hibited by  its  charter — but  it  can  in  '  fuel  gas.' 

"  Experience  has  shown  us  upon  the  contrary  that  this  competition  can 
not  exist  and,  indeed,  never  has  existed. 

"  We  have  had  some  trials  of  it  down  here,  and  our  experience  is  in  no 
way  different  from  that  of  other  cities.  The  sale  of  gas  is  a  legal  or  prac- 
tical monopoly  in  every  city  in  America — and  probably  with  good  reason — 
for  with  half  a  dozen  companies  in  the  field,  each  tearing  up  the  streets  for 
its  mains,  repairs,  etc.,  our  thoroughfares,  already  infamous  throughout  the 
world,  would  soon  be  wholly  impassable. 

"It  can,  therefore,  be  laid  down  as  a  fact  beyond  dispute — for  it  is  not  likely 
that  there  will  be  different  experiences  here  from  other  cities — that  our  citi- 
zens Avill  secure  no  advantage  from  competition,  or  derive  any  benefit  in  re- 
duced rates  from  a  new  company." 

The  following  extract  from  a  letter  recently  received  from  one  of 
the  most  prominent  capitalists  of  New  York  City  indicates  the  source 
of  this  effort  and  the  scope  of  its  bearing : 

"  My  office  being  about  the  center  of  the  gas  industry,  I  hear  many  inter- 
esting things  which  I  can  not  afford  to  repeat.  I  am  inclined  to  make  an  ex- 
ception in  your  favor  of  some  recent  intelligence  liable  to  effect  the  interests 
of  your  company. 

"  Perhaps  the  word  '  competition,'  by  constant  repetition,  has  lost  its 
terror,  and  you  will  not,  therefore,  be  surprised  at  its  reiteration  in  a  new 
form — '  fuel  gas.'  But  for  myself,  I  deplore  the  experience  of  Baltimore  and 
Chicago,  and  would  be  glad  to  say  to  my  old  fellow -citizens  of  Cincinnati, 
you  possess  but  one  gas  company,  and  if  your  governing  body  is  wise,  you 
will  never  have  another.  Regulate  the  one  now  in  existence,  make  it  furnish 
good  gas  at  a  fair  price,  and  pay  its  taxes  with  becoming  alacrity.  Show 
the  country  that  the  best  method  of  supplying  many  human  needs  is  through 
the  agency  of  a  state-regulated  monopoly.  In  short,  be  warned  by  the  ex- 
ample of  this  unhappy  metropolis,  which,  by  dint  of  encouraging  gas  compe- 
titions, has  arrived  at  the  proud  eminence  of  having  nine  gas  mains  in  each 
of  its  principal  streets,  a  dozen  striker  bills  in  its  Legislature,  and  its  press 
in  the  queer  attitude  of  urging  wholesale  confiscation  of  private  property." 


40 


I  state  to  you,  in  the  most  positive  and  unequivocal  terms,  that  it 
would  prove  twice  as  expensive  to  make  and  distribute  a  so-called 
"fuel  gas"  in  Cincinnati  as  the  ''coal  gas"  you  are  now  receiving, 
and  which  is  nearly  three  times  as  efficient  for  heating  purposes  as 
'this  uhcarburetted  gas. 

One  of  the  principal  reasons  for  which  will  be  found  in  the  fact 
that  in  the  manufacture  of  this  uncarburetted  or  so-called  "fuel  gas" 
there  are  no  residual  products;  while  the  coke,  tar,  and  ammoniacal 
,  liquor  derived  from  the  distillation  of  coal  in  the  process  of  manufac- 
ture, go  a  long  way  toward  paying  the  expense  of  the  raw  materials 
used. 

Possessing  no  odor,  leaks  can  not  be  detected  by  smell,  and  there- 
fore the  distribution  of  insidious  and  deadly  poison  would  every  year 
make  the  distributing  company  responsible  for  heavy  death-causing 

damages. 

Its  distribution  would  prove  very  much  more  expensive  because  it 
would  require  three  times  the  volume  to  perform  the  same  service, 
and  consequently  require  three  times  the  main  and  service  pipe 
capacity  for  its  delivery.  „ 

Is  there,  therefore,  any  question  in  the  minds  of  intelligent  men 
that  the  cost  of  production  would  be  more  than  double  the  cost  of 
producing  coal  gas  in  this  city  ? 

Why.  then,  should  it  be  necessary  for  me  to  longer  detain  you  with 
a  recital  of  additional  facts,  which  all  go  to  conclusively  prove  the. 
utter  impracticability  of  any  such  scheme  ? 

Is  it  not  sufficient  for  me  to  say  to  you  that  in  a  country  where 
there  are  millions  of  idle  capital  seeking  investment  in  any  enterprises 
which  will  give  the  slightest  hope  of  a  reasonable  return  on  the  in- 
vestment, 

THERE   IS  NOT  A  SINGLE   "FUEL  GAS  "•  PLANT  IN  OPERATION 

or  distributing  manufactured  gas  to  the  public  for  heating  purposes 
only. 

Not  only  is  there  none  such  in  the  United  States,  but  nowhere  in 
the  world  has  capital  backed  such  an  absurd  and  ridiculous  proposi- 
tion. 

The  claim  of  practicability  is  only  for  the  purpose  of  securing  an 
opposition  franchise  to  be  sold  to  the  highest  bidder,  and  to  be  used 
just  as  I  have  shown  you  has  been  done  in  every  other  case  where 
similar  privileges  have  been  granted.  ^ 


41 


IT  IS  A  DEADLY  POISON  AND  DANGEROUS  TO  HEALTH  AND  LIFE. 

I  will  now  proceed  to  a  consideration  of  the  dangerous,  aye  deadly, 
poisonous  character  of  this  gas,  and  do  so  with  the  full  knowledge  that 
the  promoters  of  water-gas  systems  and  their  adherents  will,  as  they 
have  heretofore  done,  endeavor  to  refute,  not  by  the  testimony  of  dis- 
interested scientists,  or  the  citation  of  practical  results,  but  by  incon- 
siderate abuse  and  ridicule,  coupled  with  the  paid  for  testimony  of 
those  whose  daily  bread  depends  upon  their  defense  of  the  system. 

So  strong  and  convincing  has  been  the  testimony  of  its  poisonous 
character,  that  at  least  two  states — New  Jersey  and  Massachusetts — by 
legislative  enactment,  prohibited  its  distribution,  and  for  many  years, 
resisted  the  most  powerful  pressure  ever  brought  to  bear  for  the  repeal 
of  any  measure  of  public  safety.  So  wealthy  and  powerful  a  corpo- 
ration as  the  Standard  Oil  Company,  seeking  a  most  important,  if  not 
vital,  outlet  for  its  product,  could  not  be  longer  resisted,  and  only  at 
the  last  session  of  the  Massachusetts  Legislature,  after  many  continu- 
ous years  of  effort,  did  these  interested  gentlemen  succeed  in  their 
purpose. 

But  this  success  in  no  way  testifies  to  any  change  in  the  facts  of  the 
case,  as  we  will  endeavor  to  show ;  and  in  so  doing  will  first  present 
for  your  consideration  the 

REPORT  OF  THE  COMMITTEE  ON    MANUFACTURES    OF    THE  MASSACHU- 
SETTS LEGISLATURE, 

made  in  April,  1884,  upon  the  occasion  of  one  of  the  numerous  ef- 
forts to  secure  the  repeal  of  this  wise  enactment. 

"  The  bill  reported  by  the  majority  repeals  the  provision  in  chapter  61  of 
the  Public  Statutes,  limiting  the  percentage  of  carbonic  oxide  in  gas  sold  for 
illuminating  purposes.  This  provision,  which  limits  the  amount  of  carbonic 
.  oxide  to  ten  per  cent,  was  proposed  in  1SS0  by  the  Gas  Inspector,  a  public 
official,  as  a  sanitary  measure,  and  was  immediately  adopted. 

"Carbonic  oxide  is  admitted  to  be  a  deadly  poison,  and  it  was  thought  at 
that  time  unsafe  and  dangerous  to  the  health  and  lives  of  the  people  of  this 
Commonwealth  to  distribute  gas  containing  more  than  ten  per  cent  of  it. 

"That  opinion  is  to-day  held  bv  Professors  Sullivan,  Morton,  Nichols, 
Markoe,  Babcock  (State  Assayer),  and  Hinman  (Gas  Inspector),  and  other 
eminent  chemists,  as  appears  from  the  report  of  the  hearing. 

"  To  repeal  this  law  is  to  permit  the  distribution  of  this  poison  among  the 
people  of  the  Commonwealth  without  any  compensation  to  them. 

"  Its  repeal  is  opposed  bv  the  Gas  Inspector,  bv  the  State  Board  of  Health 
as  represented  by  Dr.  Samuel  W.  Abbott,  who  appeared  before  the  committee. 


42 


as  well  as  by  all  the  chemists  before  named.  Water  gas,  which  the  petition- 
ers seek  to  distribute,  contains  nearly  thirty  per  cent  of  carbonic  oxide,  and  in 
six  (6)  years,  in  the  city  ot"  New  York,  there  have  been  sixty -seven  deaths 
and  seventy-one  cases  of  serious  poisoning  from  its  use. 

"  We  do  not  believe  such  a  record  will  encourage  the  legislature  of  Massa- 
chusetts to  make  the  change,  more  especially  when  in  fifty-six  years  there 
have  been  but  three  deaths  in  this  State  from  the  inhalation  of  coal  gas. 

"That  it  is  unsafe,  appeai-s  to  us  beyond  all  question,  and  we  see  no  advan- 
tages to  result  that  will  justify  the  repeal  of  this  provision. 

"  It  is  said  that  the  present  law  gives  a  monopoly  to  the  existing  coal  gas 
companies.    But  this  is  not  so;  it  neither  creates  nor  protects  monopolies. 

"Nor  does  it  appear  to  us  that  any  good  would  result  from  competing  com- 
panies. The  evidence  shows  that  competition  has  almost  invariably  resulted 
in  a  combination  of  the  companies,  in  increasing  the  price  of  gas,  in  compel- 
ling the  consumers  to  pay  dividends  on  the  consolidated  capital,  and  serves 
no  purpose  but  to  subject  the  people  to  plunder,  the  existing  companies  to 
wreckage,  and  assists  speculative  ow  ners  ot"  patent  processes  (of  which  there 
are  a  number)  to  sell  their  patents. 

"  Therefore,  when  the  manufacturers  of  this  deadly  gas,  containing  nearly 
thirty  per  cent  of  carbonic  oxide,  ask  to  have  the  protective  clause  of  the 
present  law  in  this  regard  repealed,  and  it  is  found  that  the  deaths  by  blood 
poisoning  from  the  escape  of  water  gas.  to  the  number  of  sixty-seven,  have 
alreadv  been  registered  in  New  York; 

"  When  in  the  distribution  of  thousands  of  millions  of  feet  of  coal  gas  made 
in  Massachusetts  during  the  past  fifty-six  years,  but  three  deaths  are  known 
to  have  taken  place  from  its  inhalation; 

"  When  it  is  asserted  by  the  promoters  of  water  gas  that  it  can  be  made  at 
from  twentv-five  to  thirty  per  cent  less  than  coal  gas,  without  any  reliable 
evidence  of  the  fact,  and  with  contrary  statements  from  skilled  gas  engineers; 

"  When  it  is  found  from  the  tables  of  the  Brooklyn  Board  of  Health  that 
gas  is  sold  by  four  hundred  and  forty-six  coal  gas  companies  in  the  United 
States,  at  an  average  of  $2.78  per  thousand  cubic  feet,  and  by  one  hundred 
and  twenty  water  gas  companies,  at  an  average  of  $3.73^  per  thousand  cubic 
feet; 

When  there  is  no  evidence  that  competition  with  water  or  other  gas  has 
permanently  lowered  the  price,  but  on  the  contrary  it  is  found  that  the  ulti- 
mate result  has  always  been  to  raise  the  price; 

''And  when  it  shown  that  water  gas  in  New  York  is  sold  for  $2.25  per  thou- 
sand feet,  and  that  coal  gas  in  Boston  is  sold  for  $1.80— we  submit  that  no 
reason  has  been  shown  why  a  law  made  for  the  protection  of  our  own  com- 
munity should  be  repealed  for  the  benefit  of  speculators  from  other  states. 

Wm.  A.  Hodges, 
James  O.  Parker, 

On  the  fart  of  the  Senate. 
J.  B.  Judkins, 

On  the  part  of  the  House.'" 


43 


I  will  next  submit  extracts  from  the  Annual  Report  of  Chas.  W. 
Hinman,  State  Inspector  of  Gas,  submitted  to  the  Legislature  the  fol- 
lowing year  : 

"  Water  gas  was  discovered  about  one  hundred  years  ago,  and  various  at- 
tempts have  been  made  to  utilize  it.  Until  about  the  year  1840  to  1850  these 
attempts  amounted  to  little.  As  water  gas  itself  gives  no  light  when  burned, 
it  is  proposed  to  pass  it  through  retorts  charged  with  vapor  of  volatile  hydro- 
carbons, or  to  mix  it  with  the  rich  gas  from  various  oils. 

"A  number  of  European  towns  were  lighted  with  these  gases,  but  they  have 
all  since  abandoned  this  method  of  illumination.  This  abandonment  was 
due  to  two  reasons,  one  of  which  was  that  the  gas  could  not  be  produced 
cheaply  enough.     The  other  reason  was  the  poisonous  quality  of  the  gas. 

"  The  fact  that  carbonic  oxide  is  a  true  physiological  poison  should  prevent 
its  forming  any  considerable  proportion  of  illuminating  gas  that  is  to  be  lis 
tributed  over  any  extended  space  and  generally  used. 

"This  fact  of  the  poisonous  nature  of  carbonic  oxide  is  now  so  well  known 
that  no  person  whose  opinion  is  entitled  to  respect  doubts  it. 

"  There  is  an  entire  agreement  of  opinion  that  warm-blooded  animals  are 
killed  bv  remaining  in  an  atmosphere  containing  from  four-tenths  of  one  per- 
cent to  one  per  cent  of  carbonic  oxide." 

This  official  gives  quite  a  lengthy  and  detailed  account  of  practical 
experiments  made  in  the  presence  of  a  Committee  of  the  Massachu- 
setts Legislature,  to  determine  the  relative  effects  of  inhaling  water 
and  coal  gas,  saying  : 

"A  rabbit  was  caused  to  breathe  air  containing  ten  per  cent  of  water  gas; 
it  fell  over  in  two  minutes,  and  was  dead  in  twenty  minutes. 

"Another  rabbit  was  caused  to  breathe  air  containing  the  same  volume  of 
coal  gas;  in  ten  minutes  it  showed  signs  of  weakness  and  felt  poorly,  but  did 
not  fall  over,  and  remained  for  thirty-five  minutes  apparently  but  little  in- 
jured." 

He  then  goes  on  to  state  that  probably  the  fairest  place  to  make  the 
comparison  is  in  New  York  and  Brooklyn.  The  following  facts  are 
from  the  Report  of  the  Health  Commissioners  of  Brooklyn,  made  in 
July,  1883,  and  are  taken  from  the  coroner's  report  of  the  two  cities  : 

"  In  Brooklyn,  from  the  time  of  the  introduction  of  illuminating  gas  up  to 
the  time  water  gas  was  used — about  thirty  years — there  has  been  only  one 
death  from  inhaling  coal  gas.  In  the  three  years  immediately  preceding  the 
date  of  the  report,  and  during  which  time  less  than  half  the  gas  furnished  was 
water  gas,  there  were  seven  cases  of  poisoning  by  water  gas.  In  New  York, 
for  the  same  time,  there  were  thirty-three  cases  of  death  by  water  gas.  Pur- 


44 


ing  the  years  1SS0,  'Si,  '82,  and  '83,  there  was  an  average  of  fifteen  deaths  per- 
jear  in  New  York  from  inhaling  water  gas. 

"  Baltimore  has  used  more  water  gas  than  any  city  outside  of  New  York 
and  Brooklyn.  It  has  been  stated,  on  the  authority  of  the  official  records, 
that  there  was  no  death  from  poisoning  by  illuminating  gas  from  the  time  of 
its  introduction  in  1830  until  1SS0 — the  latter  being  the  year  in  which  water 
gas  was  introduced.  In  the  next  four  years  there  were  eleven  reported  deaths 
from  this  cause. 

'•  Besides  those  who  have  died,  a  greater  number  have  been  more  or  less  in- 
jured; but  it  would  be  difficult  to  obtain  any  thing  like  a  complete  account  of 

these  injuries." 

He  then  goes  on  to  cite  the  most  eminent  authorities  in  support  of 
his  claim  that  this  gas  is  a  deadly  poison  and  its  distribution  should  be 
prohibited  by  law : 

MlI.I.F.R  — ClIKM  ISTRY  (page  491). 

"  When  respired,  even  though  diluted  with  air,  it  acts  as  a  direct  poison." 

Ur  k — I)  1 C no \  a R  y  ( page  6 1 o ) . 

"It  is  very  fatal  to  animals,  and  when  inspired  in  a  pure  state  almost  im- 
mediately produces  coma.'' 

Payne's  Industrial  Chemistry  (page  119). 

"A  few  per  cent  of  this  gas  is  sufficient  in  a  short  time  to  kill  an  animal 
thai  breathes  the  mixture.*' 

"Wiurtz — Chemical  Dictionary  (page  755). 

"  It  is  very  poisonous.  A  bird  dies  instantly  in  air  containing  four  to  fi\e 
per  cent  of  this  gas,  and  one  percent  is  sufficient  to  cause  death  in  two 
minutes." 

Letherby — Lancet  (page  219). 

"  1  have  myself  ascertained  that  air  containing  only  five-tenths  of  one 
percent  of  this  gas  will  kill  small  birds  in  three  minutes,  and  that  a  mixture 
containing  one  per  cent  of  thi>  gas  \\  \U  kill  in  half  the  time;  an  atmosphere 
having  two  per  cent  of  this  gas  will  render  a  guinea  pig  insensible  in  two 
minutes.  And  in  all  these  cases  the  animals  show  no  sign  of  pain;  they 
fall  insensible,  and  either  die  at  once  with  a  slight  flutter,  hardly  amounting 
to  a  convulsion,  or  they  gradually  sleep  away  as  if  in  profound  coma. 

Dragendroff  (page  78)  '/ 

"Carbonic  oxide  must  be  designated  as  a  poison  which  is  absorbed  with 
especial  ease  by  the  blood  through  the  lungs  and  taken  to  all  parts  of  the 
body." 

Woodman  and  Tidy  (page  482): 

"The  large  quantity  of  carbonic  oxide  in  water  gas  would  render  its  em- 
ployment dangerous  as  an  agent  of  illumination." 


45 

■ 

Rkissig — Hand-Book  (page  59): 

"This  water  gas  in  particular  is  dangerous  on  account  of  its  large  con- 
tents of  carbonic  oxide.  Its  poisonous  effects  are  well  known,  and  every 
year  the  lives  of  many  are  sacrificed  to  it. 

"Great  caution  should  therefore  be  used,  and  the  main  stop-cock  should 
he  turned  every  evening  by  some  reliable  person." 

He  follows  this  by  a  recital  of  the  details  of  the  remarkable  increase 
in  deaths  from  gas  poisoning  following  the  introduction  of  water  gas 
in  Breslein,  where,  between  December  17th  and  January  27,  1880, 
ten  such  cases  were  reported.  And  in  one  case  alone  five  persons 
were  killed  by  the  gas  escaping  from  a  broken  main  thirty-five  feet 
distant,  and  finding  its  way  through  the  earth  up  into  their  dwelling. 

We  follow  this  by  reference  to  many  additional  authorities,  all 
agreeing  that  it  is  a  most  deadly  and  insidious  poison : 

Gorham's  Chemistry  (page3So): 

"  Sir  Henry  Davy  once  took  three  inspirations  of  this  gas  mixed  with 
about  one-fourth  of  common  air;  the  effect  was  a  temporary  loss  of  sensa- 
tion, which  was  succeeded  by  giddiness,  sickness,  acute  pains  in  different 
parts  of  the  body  and  extreme  debility.  Some  days  elapsed  before  his  en- 
tire recovery." 

Regnault's  Chemistry  (page  321): 

"  It  is  not  merely  passive  in  not  supporting  respiration,  but  is  active  as  a 
poison;  for  an  animal  perishes  if  left  for  some  time  in  an  atmosphere  con- 
taining a  few  per  cent  of  this  gas." 

Chenot — "Comptes  Rendus"  (page  735): 

"The  pure  carbonic  oxide  is  not  simply  a  reducing  agent,  of  the  greatest 
energy,  but  a  frightful  poison  in  very  small  doses. 

"  Finally,  it  appears  that  poisoning  by  carbonic  oxide  is  the  most  terrible 
in  itself,  and  brings  after  it  profound  disorganization." 

Eulenberg's  Handbuch,  Berlin  (page  352): 

"  For  sanitary  reasons,  on  account  of  the  very  poisonous  properties  of 
carbonic  oxide,  all  processes  in  which  this  gas  is  produced  should  be  very 
strictly  watched." 

Stockhardt's  Chemistry  (page  100): 

"Carbonic  oxide  is  extremely  poisonous." 

Lome's  Chemistry  (page  318): 

"There  is  great  danger  in  breathing  air  which  contains  some  hundredths 
of  carbonic  oxide.    This  gas  acts  as  a  pure  poison." 

Leblanc  and  Dumas,  French  Chemists,  say: 

"The  large  quantity  of  carbonic  oxide  in  water  gas  would  render  its  em- 
ployment dangerous  as  an  agent  for  illumination." 


46 

Brand  and  Taylor's  Chemistry  (page  2415;: 

"Carbonic  oxide  is  a  powerful  narcotic  poison.  When  breathed  it  is 
speedily  fatal  to  animals;  it  produces,  before  death, giddiness  and  insensibil- 
ity, followed  by  profound  coma." 

Booth  and  Fabor's  Chemistry  (page  321): 

"  Carbonic  oxide  is  not  merely  passive  in  not  supporting  respiration,  but 

is  active  as  a  poison." 

Thenard's  Chemistry  (page  274): 

"Carbonic  oxide  kills  immediately  the  animals  that  breathe  it.*' 

Towne's  Chemistry  (page  [68): 

"  Carbonic  oxide  is  colorless,  has  very  little  odor,  and  is  extremely  poi- 
sonous." 

Reisk;.  Munich,  on  Coal  and  Water  Gas  (page  59): 

"  T  his  latter  gas  is  particularly  dangerous  on  account  of  its  large  contents 
of  carbonic  oxide;  great  caution  should  therefore  be  used,  and  the  main 
cock  be  turned  every  evening,  by  some  reliable  person,  so  that  only  small 
quantities  of  the  gas  can  escape." 

Professor  Henry  Morton,  Presidenl  Stevens  Institute: 

"  For  many  years  past  attempts  have  been  made  to  promote  the  use  of 
water  gas  as  an  agent  for  illumination.  This  gas  sometimes  contains  as 
much  as  thirty-four  per  cent  of  carbonic  oxide,  and  it  has  been  fully  demon- 
strated how  very  dangerous  this  gas  is  to  human  life. 

"  To  sum  up.  then,  in  a  few  words,  it  seems  that  as  far  as  weight  of  au- 
thority goes,  carbonic  exide  stands  condemned  as  a  rank  poison,  very  ex- 
ceptionally dangerous  as  compared  w  ith  the  other  constituents  of  illumin- 
ating gas." 

Ciias.  M.  Cresson,  M  l).,  the  eminent  chemist  of  Philadelphia.  Pa.,  says: 
"Asphyxia  by  carbonic  acid,  hydrogen,  or  olefiant  gas  is  not  poisonous. 
The  action  of  carbonic  oxide  upon  the  human  system  is  of  a  different  nat- 
ure from  that  produced  by  any  of  the  gases  enumerated.  In  addition  to  as- 
phyxia, carbonic  oxide  produces  an  organic  change  in  the  blood,  a  poison- 
ous change,  which,  when  once  established,  places  the  patient  beyond  the 
reach  of  antidotes." 

N.  T.  Lupton,  Professor  of  Vanderbilt  University,  Tennessee,  says: 

"The  deleterious  effects  of  coal  gas,  after  the  removal  of  gases  containing 
sulphur,  are  generally  estimated  from  its  percentage  of  carbonic  oxide,  and 
as  water  gas  contains  from  four  to  five  times  as  much  of  this  poisonous  con- 
stituent as  coal  gas,  its  use  has  been  condemned  as  dangerous  to  health. 

"  The  products  of  the  combustion  of  water  gas  are  also  more  deleterious 
than  those  of  coal  gas,  since  a  much  larger  quantity  of  carbonic  acid  gas  is 
produced.  A  given  volume  of  Avater  gas  produces,  when  burned,  about 
fifty  per  cent  more  of  carbonic  acid  gas  than  is  produced  by  the  combus- 
tion of  an  equal  volume  of  coal  gas." 


47 


M.  Marqueritte,  in  his  testimony  before  the  Municipal  Council  of 
Paris,  in  1854,  said: 

''The  manufacturer  would  always  have  a  great  interest  in  favoring  the 
formation  of  carbonic  oxide,  because  he  .would  thus  considerably  augment, 
and  without  cost,  the  volume  of  the  combustible  gas  made,  both  by  effect- 
ing a  more  complete  decomposition  of  the  steam,  and  by  substituting  for 
an  incombustible  gas  which  would  require  to  be  absorbed,  a  combustible 
gas — earbonic  oxide — which  would  possess  the  same  value  for  illumination  as 
hydrogen. 

"  It  is  evident  that  a  manufacture  in  which  the  maker  has  the  greatest  in- 
terest to  increase  the  production  of  the  dangerous  element,  would  not  afford 
any  security  to  the  consumer,  and  should  awaken  the  liveliest  solicitude  of 
the  public  authorities." 

This  I  will  follow  by  a  copy  of  the  report  of  M.  Pelouze,  made  to 
the  same  body  in  June,  1854 : 

"M.  Dumas  says  that  carbonic  oxide  is  a  gas  known  from  the  commence- 
ment of  the  present  centurv,  and  for  many  years  no  one  thought  of  attrib- 
uting venomous  properties  to  it;  no  man  of  science  suspected  it.  When, 
therefore,  fifteen  years  since,  it  was  proposed  to  me  to  employ  water  gas  for 
lighting  and  heating,  I  must  acknowledge  that  I  did  not  hesitate  to  advise,  in 
my  course  of  lectures,  the  making  of  experiments  in  this  direction. 

"  Subsequent  experiments  terrified  me,  and  since  then  they  have  been  re- 
peated many  times  by  different  men  of  science. 

*-.'*.         *  #  *  *  *  *  * 

"  It  is  impossible  to  admit  that  a  gas  producing  such  effects  should  be  em- 
ployed in  any  close  apartment,  in  a  shop,  or  in  a  theater.  Such  is  the  opin- 
ion of  the  honorable  President  of  the  Commission;  and  if  it  is  considered 
that  gas  extracted  from  water  by  the  process  of  the  company  Alliance  con- 
tains as  much  as  30  per  cent  of  carbonic  oxide,  we  may  ask,  as  I  had  the 
honor  to  observe  in  the  last  sitting,  whether  there  is  any  cause  to  approve  of 
experiments  resulting  in  the  manufacture  of  a  gas  containing  such  a  propor- 
tion of  poisonous  substances  ?  We  can  not,  gentlemen,  by  our  silence,  en- 
courage so  dangerous* a  manufacture;  and  it  was  with  great  truth  that  one  of 
our  colleagues  said,  in  one  of  our  preceding  sittings  that  notions  of  this  nat- 
ure would  be  very  usefully  published,  because  they  are  not  generally  known. 
It  must  be  concluded,  from  all  this,  that  the  gas  of  the  Company  Alliance 
should  not  only  not  be  applied  to  the  lighting  of  a  large  city,  but  that  even  its 
private  use  should  be  severely  forbidden. " 

PROFESSOR   E.    S.    WAYNE,  OF  THIS   CITY,    SAYS  WATER   GAS  WILL  KILL 
A   BIRD   IN   LESS  THAN   A  MINUTE. 

We  might  go  on  ad  infinitum  citing  authorities  to  establish  the  cor- 
rectness of  this  proposition,  but  time  will  not  admit,  and  I  shall  there 


48 


fore  close  references  to  this  character  of  testimony  by  submitting  a 
report  made  by  our  own  distinguished  chemist,  Ed.  S.  Wayne: 

"Dear  Sir: — The  production  of  illuminating  gas  by  the  vapor  of  water 
passed  through  coal,  coke,  or  other  forms  of  carbon  heated  to  a  red  heat,  or 
beyond,  is  by  no  means  a  novelty.  It  was  originally  discovered  by  Selligue 
of  Paris,  between  thirty  and  forty  years  ago;  at  the  time  of  its  discoverv,  it 
was  thought  to  be  an  advance  in  the  economical  production  of  illuminating 
■gas,  as  it  produced  from  a  given  weight  of  coal  or  coke  an  increased  volume, 
and  also  one  of  higher  illuminating  value  than  gas  made  from  coal  in  the 
usual  way. 

"Chemical  examination  of  the  gas  proved  that  it  contained  a  very  large 
amount  of  carbonic  oxide,  a  highly  deleterious  gas;  but  its  use  was  attended 
with  so  much  risk  of  life,  that  it  was  never  extended,  and  I  believe  was  posi- 
tively forbidden  by  the  authorities  at  Paris. 

"Gas  made  by  the  water  process,  no  matter  what  form  of  carbon  may  be 
used,  whether  anthracite,  coke,  etc.,  according  to  the  analysis  of  it  made  bv 
M.  Langlois,  Paris,  always  contains  a  nearly  constant  quantity  of  carbonic 
oxide;  the  volume  of  this  dangerous  substance  he  found  to  be  from  20  to  26 
per  cent. 

"To  show  the  deleterious  character  of  this  carbonic  oxide,  and  how  small  a 
quantity  of  it  it  takes  to  make  a  mixture  with  atmospheric  air  fatal  to  animal 
life,  I  will  transfer  and  quote  from  'Traite  de  Chimie,  by  Pelouze  and  Fremy,' 
Paris,  page  913. 

ki  If  a  bird  were  placed  under  a  glass,  and  0.025  of  it  introduced  and  free 
from  carbonic  acid,  the  bird  becomes  uneasy,  spreads  its  wings,  and  falls  dead 
in  less  time  than  a  minute.  In  summing  up,  he  says  the  gas  extracted  by 
water  can  be  employed  only  in  very  limited  cases,  and  it  will  always  present 
the  grave  inconvenience  we  have  just  indicated. 

"An  atmosphere  containing  only  0.01  per  cent  of  it  is  more  dangerous  than 
one  containing  0.25  per  cent  of  carbonic  acid;  from  this  maybe  understood 
the  dangerous  consequence  to  life  by  the  accidental  escape  of  gas  containing 
so  large  a  proportion  of  carbonic  oxide — 20  to  26  per  cent — into  a  close  room 
at  •  ;ght,  from  leak  in  the  gas  fixtures,  or  a  light  accidentally  put  out,  or  a  tap 
not  completely  shut  off;  such  accidents  do  occur  with  the  use  of  coal  gas,  and 
will  also  with  the  use  of  water  gas.  We  often  read  and  hear  of  such  acci- 
dents with  gas,  but  they  are  seldom  fatal,  and  the  victims  of  such  accidents, 
by  removal  to  pure  atmosphere,  soon  recover.  But  I  am  very  much  of  the 
opinion  should  the  leak  occur  with  water  gas.  that  the  victim  when  found 
would  be  past  human  aid;  instead  of  the  physician  there  would  be  a  call  for 
the  coroner.  Another  fact  which  makes  water  gas  more  dangerous  than  coal 
gas,  is  that  it  is  about  double  the  specific  gravity  of  coal  gas,  also  heavier  than 
the  air,  and  consequently  will  not  diffuse  itself  rapidly,  but  settle  to  the  lower 
portions  of  the  room,  and  render  the  atmosphere  there  quickly  dangerous  to 
the  occupants.  Coal  gas,  on  the  other  hand,  is  lighter  than  atmospheric  air, 
it  ascends  and  only  slowly  diffuses  itself  down  toward  the  lower  parts  of  the 
room,  where  its  more  intense  and  easily  recognized  odor  will  »oon  give  notice 


49 


to  the  occupants  that  something  is  wrong,  and  insure  an  investigation  to  find 
out  and  remedy  the  delect. 

"For  the  above  reasons,  the  introduction  of  water  14:1s  for  general  use  is  a 
matter  that  should  be  thoroughly  weighed,  and  not  hastily  decided  upon  by 
the  authorities;  and  it  is  also  of  enough  importance  to  warrant  a  full  investi- 
gation by  the  Board  of  Health. 

E.  S.  Wayne,  M.I).,  Chemist.1* 

THE  AMERICAN  GAS  LIGHT  JOURNAL    SAYS   IT   IS  A  CARBURETTED 

POISON. 

The  American  Journal  of  March  16,  1883,  in  a  leading  editorial 
upon  this  subject,  says: 

•'About  rive  years  ago,  a  series  of  articles  appeared  in  this  journal  from  the 
pen  of  Dr.  Henry  Morton,  President  of  the  Stevens  Institute  of  Technology, 
pointing  out  the  exceedingly  poisonous  qualities  of  carbonic  oxide  and  the 
dangers  to  public  health  that  might  result  from  permitting  too  large  a  propor- 
tion of  this  constituent  in  illuminating  gas. 

"At  that  time  it  was  a  matter  of  opinion  and  an  honest  difference  of  opin- 
ion is  always  to  be  respected;  but  five  years  Use  of  water  gas  has  certainly 
placed  the  matter  beyond  the  pale  of  opinion. 

"  Previous  to  the  introduction  of  water  gas  in  New  York  City,  for  fifty 
years  there  was  no  record  of  a  single  death  from  inhaling  coal  gas;  and  al- 
though men  engaged  about  the  works  have  been  overcome,  exposure  to  fresh 
air  always  brought  relief,  and  it  is  said  to  be  a  fact  that  no  person  found 
alive  was  ever  known  to  die  from  the  effects  of  inhaling  coal  gas.  Coal 
gas  does  not  produce  the  blood-poisoning  which  is  so  fatal  in  cases  of  water 
gas  suffocation." 

The  article  then  goes  on  and  gives  the  names  and  localities  of  ninety- 
three  fatalities  due  to  inhaling  water  gas,  between  November,  1878, 
and  March,  1883,  a  period  of  fifty-two  months,  and  then  adds: 

"Theories  may  be  retracted  and  statements  modified;  but  here  is  a  record 
that  should  attract  the  attention  of  those  whose  care  it  is  to  protect  the  pub- 
lic health;  and  no  amount  of  explanation  can  bring  back  to  life  those  who 
have  already  died  from  the  effects  of  the  poison,  for  water  gas  itself  is  but  car- 
buretted  poison. 

"  Its  insidious  influences  have  often,  no  doubt,  been  felt  by  tho>e  who  did 
not  know  what  was  affecting  them,  and  there  are,  doubtless,  hundreds  of  ease--, 
never  mentioned  in  any  newspaper,  where  illness,  disease,  and  ultimate  death 
have  occurred  from  inhaling  this  dangerous  element. 

"If  one  hundred  people  are  killed  in  four  years  in  New  York  where  onlv 
two-fifths  of  the  gas  is  carburetted  poison,  what  would  the  number  have  been 
if  all  the  gas  sold  were  of  this  poisonous  character?    Are  the  statistics  of  the 


50 


Health  Department  arranged  for  this  new  order  of  things?  A  new  column 
will  be  required,  headed 

KILLED  BY  WATER  GAS." 

The  terrible  disaster  at  Troy,  N.  Y.,  is  a  fit  supplement  to  the  re- 
corded disasters  in  New  York  City.  There,  on  the  17th  of  January, 
three  years  ago,  three  persons  were  destroyed  while  seemingly  en- 
gaged in  ordinary  conversation,  while  over  a  score  of  others  were 
more  or  less  severely  prostrated,  and  when  once  the  wheels  of  inves- 
tigation were  placed  in  motion,  all  this  suffering  was  instantly  traced 
to  an  accidental  inhalation  of  the  44  fuel-water-gas,"  distributed  from 
the  works  of  the  Troy  Fuel-gas  Company. 

The  following  extract  from  the  Journal's  account  of  this  disaster 
can  not  but  be  instructive  : 

"About  7  P.  M .  a  young  girl — Rose  Stone — employed  in  Howe's  Restaurant 
became  bewildered  and  apparently  unable  to  make  known  her  condition.  She 
rushed  through  an  open  door  way  to  the  yard  where  she  fell  to  the  ground  in 
a  fainting  condition.  John  Talmage,  another  employe,  followed  in  her  wake. 
A  young  daughter  of  Talmage  was  now  taken  sick,  and  the  father,  who  went 
to  her  relief,  Succumbed.  The  restaurant  keeper,  How  e,  w  as  found  in  a  dazed 
condition.  To  be  brief,  eleven  persons  in  the  Howe  domicile  were  more  or 
less  prostrated,  and  all  complained  of  similar  symptoms — headache,  nausea, 
and  drowsiness.  Dr.  Morton  was  summoned  and  astonished  the  inmates  by 
at  once  opening  all  the  doors  and  windows.  Turning  to  the  sufferers,  he  ex- 
plained that  they  had  inhaled  water  gas,  which  they  stoutly  denied,  as  there 
was  no  gas  used  on  the  premises,  and  none  of  the  odors  characteristic  of  gas 
had  been  perceived  by  them. 

"  It  proved  that  the  main  had  been  fractured,  and  the  top  earth  erust  hav- 
ing been  frozen,  it  passed  through  the  earth  and  entered  the  cellar,  subse- 
quently finding  its  way  to  the  upper  apartments  of  the  building. 

"  The  gas.  a  simple  uncarburetted  '  fuel  gas  '  manufactured  under  the  '  Lowe 
Process'  being  odorless,  performed  its  work  unperceived  by  the  sense  or 
smell. 

"The  house  adjoining  was  next  examined  where  a  startling  state  of  affairs 
was  brought  to  light.    The  door  was  kicked  in  without  eliciting  a  response. 

"  In  the  kitchen  was  seen  the  form  of  an  elderly  woman  apparently  asleep 
in  an  arm  chair.  A  set  of  false  teeth  was  clenched  in  one  hand,  but  there 
was  no  evidence  of  the  death  struggle.  Hurrying  to  the  front  room  the  dead 
bodv  of  a  second  female  was  found  on  the  floor  with  a  blanket  wrapped 
around  her  and  a  tin  basin  near  her  head,  in  which  she  had  evidently  vomited. 
In  the  same  room,  sitting  upright  on  a  lounge,  with  fingers  locked  and  hands 
resting  on  his  knees,  was  found  the  dead  body  of  a  man. 

"  Many  others  in  the  neighborhood  were  seriously  affected,  and  one  of  the 
most  peculiar  features  of  the  case  is  the  varying  manner  in  which  their  sys- 
tems were  affected. 


51 


UA  Mr.  Barnes — an  electrician — was  only  saved  by  the  presence  of  mind  of 
hi->  wife,  who  was  also  similarly  affected. 

"  It  seems  that  30  persons  were  seriously  affected,  and  it  is  horrible  to  con- 
template what  the  actual  results  would  have  been  had  the  break  occurred  at 
a  late  hour  when  the  whole  neighborhood  was  wrapped  in  slimmer. 

"  Troy  would  have  been  treated  to  a  genuine  holocaust,  save  that  instead 
of  the  victims  having  been  destroyed  by  fire,  'fuel  gas'  would  have  been  the 
responding  destroyer. 

••  Drv.  Bouticon  and  Morris,  while  in  the  act  of  opening  the  bodies,  were 
nearly  overcome  by  inhaling  the  gas  that  escaped  from  the  vitals  of  the  sub- 
jects, and,  in  fact,  the  first  named  physician  was  so  seriously  affected  that  he 
had  finally  to  retire  from  the  operating  room  before  the  dissection  was  com- 
pleted. 

-This  is,  unfortunately,  not  the  first  or  only  case.  Two  weeks  previous 
fifteen  persons  were  more  or  less  affected  by  the  gas  entering  a  store  pre- 
cisely in  the  same  manner.  Again,  one  day  last  fall  many  of  the  laundry 
operatives  who  use  the  gas  were  stricken  down. 

"A  special  meeting  of  the  City  Council  was  at  once  called  and  the  '  fuel 
gas '  franchise  was  repealed. 

"It  is  needless  to  say  that  cheap  fuel  gas  is  a  desideratum;  but  we  are  not 
prepared  to  admit  that  it  is  of  enough  importance  to  warrant  the  vending 
of  an  article  that  takes  foremost  rank  in  the  list  of  poisons. 

In  view  of  the  contradictory  statements  in  regard  to  the  conditions 
under  which  a  competing  company  obtained  a  franchise  to  distribute 
"  fuel-gas"  in  St.  Louis,  the  following  statement  or  affidavit,  given  by 
one  of  the  Directors — and,  I  believe,  President — of  that  company, 
John  W.  Harrison,  as  set  forth  in  the  published  hearings  of  the  "Com. 
on  Manufactures"  of  the  Mass.  Legislature,  should  be  conclusive: 

"  The  company  in  St.  Louis  was  organized  as  a  Steam  Heating  Co.;  they 
obtained  permission  to  lay  their  pipes  in  the  streets  for  this  purpose,  solely 
for  steam  heating.  But  after  they  had  got  their  pipes  down,  they  proceeded 
to  pipe  gas;  but,  as  appears  from  the  testimony  of  Mr.  Harrison,  with,  little 
success.  I  am  one  of  the  original  incorporators  of  the  Heat  and  Power  Fur- 
nishing Company,  but  have  not  had  charge  of  the  works  since  they  com- 
menced manufacturing  illuminating  gas.  Previous  to  that  time,  we  manu- 
factured a  non-illuminating  or  'fuel-gas,'  but  we  never  succeeded  in  selling 
any:  most  of  it  was  given  away. 

"  We  found  it  was  a  failure  and  changed  the  works.  We  consumed  the 
most  of  it  ourselves,  with  all  the  best  appliances  we  could  get,  and  demon- 
strated the  fact  that  it  was  not  suitable  to  offer  on  the  market  in  that  shape!' 

Nashville  was  favored  by  a  visit  from  the  representatives  of  a  sim- 
ilar scheme ;  but,  after  a  most  thorough  and  patient  investigation,  the 


52 


Board  of  Aldermen  of  that  city  made  an  adverse  report,  from  which 
the  following  extract  is  submitted : 

"  Neither  the  application  of  the  petitioners  for  the  privilege  of  using  the 
streets  of  this  city,  nor  the  bill  granting  it,  anv  where  refers  to  the  kind  of  ga  • 
to  be  manufactured  and  vended  by  the  new  company. 

'•  Under  the  bill,  therefore,  the  said  company  would  unquestionably  have 
the  right  to  manufacture  and  vend  the  poisonous  water~gas,  and  thereby  en- 
danger the  lives  of  one  citizens. 

We  regard  it  as  the  imperative  duty  of  every  municipal  government  to  see 
that  the  gas  distributed  through  its  streets  is  safe  and  free  from  dangerous 
constituents. 

"The  weight  of  authority  before  your  Committee  is  overwhelmingly  against 
the  introduction  of  water-gas,  under  whatever  name  it  may  assume,  as  dan- 
gerous to  life  and  property. 

41  Your  Committee  think  that  learned  chemists,  however  much  they  may 
differ  on  the  safety  of  other  gases,  concur  in  the  opinion  that  coal  gas,  such  as 
is  used  in  this  city  at  prese  nt,  is  the  standard  gas  of  the  world — that  is.  it  is 
safe,  steady,  reliable,  and  comparatively  free  from  the  poisonous  constituents 
that  lurk  so  treacherously  in  the  composition  of  water-gases. 

"  In  view  of  these  and  other  reasons  that  might  be  assigned,  your  Commit- 
tee oppose  the  passage  of  this  bill,  and  all  others  of  a  similar  kind,  unless  the 
city  and  citizens  arc  amply  secured  against  the  introduction  of  a  dangerous 
and  unsafe  gas." 

Grand  Rapids,  Mich.,  has  a  mayor — J.  M.  Weston — who  has  man- 
ifested a  desire  to  protect  the  lives  and  health  of  the  citizens  of  that 
progressive  city,  through  a  "  veto  "  which  indicates  knowledge  of  the 
subject  under  consideration,  under  date  of  March  15,  1889,  ne  says: 

k,To  the  Honorable  Common  Council: — I  hereby  suspend  the  action  of  the 
Common  Council  in  passing  what  is  know  n  as  the  '  Fuel-gas  Ordinance.' 

"  While  not  opposed  to  safe  fuel-gas,  or  any  other  material  designed  to 
cheapen  fuel  or  light,  I  can  not  approve  of  this  ordinance. 

"It  permits  the  use  of  an  odorless,  poisonous  blue  gas  throughout  the  city, 
absolutely  without  restriction.  Such  gas  is  destructive  to  human  life,  and  its 
use  is  prohibited  by  statutes  in  several  states.  The  protection  of  the  city  must 
necessarily  rest  entirely  upon  the  express  terms  of  the  ordinance  and  not  upon 
the  mere  assertion  of  interested  individuals  outside  the  ordinance.  If  the 
verbal  promises  to  use  only  an  'approximately  safe  fuel-gas'  are  to  be  hon- 
estlv  performed,  why  not  put  them  in  their  natural  and  proper  place — the  or- 
dinance itself.    There  is  where  they  ought  to  be. 

"I  am  confident  that  under  our  charter  the  Common  Council  has  no  author 
itv  to  grant  an  ordinance  permitting  the  use  of  poisonous  fuel-gas  in  this 
city. 

"It  grants  a  franchise  to  a  corporation  vet  to  be  formed,  with  stockholders 


53 


and  capital  unknown.  The  proposed  $15,000  bond  would  be  an  empty  prom- 
ise, giving  the  city  no  right  to  recover  any  substantial  sum  in  case  the  guar- 
antees violate  every  word  of  the  ordinance,  as  any  injuries  zvould  beta  indi- 
viduals and  not  to  the  city. 

"  It  is  worse  than  no  guarantee — it  is  a  delusion  and  a  humbug. 

"There  are  other  objections,  but  these  particularly  mentioned  seem  suffi- 
cient." 

J.  Emerson  Dawson,  an  English  inventor  of  one  of  the  most  cele- 
brated processes  of  generating  "  producer  gas,"  on  the  8th  of  Sep- 
tember, last  year,  read  a  paper  on  "Gaseous-fuel,"  before  the  Sci- 
ence Section  of  the  British  Association,  and  during  the  discussion  of 
its  merits,  in  reply  to  an  inquiry  as  to  the  danger  of  carbonic  oxide, 
which  formed  30  per  cent  of  the  gas  in  question,  said  : 

'•  It  is  useless  to  deny  that  the  gas  is  poisonous,  and  in  that  sense  dangerous, 
and  like  other  poisonous  things  must  be  used  accordingly,." 

An  opinion  fully  concurred  in  by  the  celebrated.  Professor  Shaw, 
who  was  present  at  the  sanre  meeting. 
Dr.  Tilden,  at  the  same  time,  said  : 

"  The  serious  objection  to  the  use  of  water-gas  for  domestic  purposes  is  its 
poisonous  character;  nearly  one-third  of  its  volume  consisting  of  carbonic 
oxide,  which  was  well  known  to  be  a  virulent  poison." 

Dr.  Lowthian  Bell,  in  speaking  of  a  similar  process — Wilson  '  pro- 
ducer gas'' — said: 

"  He  had  endeavored  to  induce  certain  gentlemen  to  introduce  it  in  London 
for  fuel  purposes;  but  they  appeared  to  be  agreed  to  a  man  that  it  was  a  mat- 
ter of  so  much  danger  and  doubt  that  no  one  in  his  senses  would  entertain  it.'' 

Dr.  Ed.  S.  Wood  contributed  a  paper  to  be  read  before  the  Amer- 
ican Health  Association,  in  1876,  in  which  he  says: 

"  Strenuous  efforts  are.  of  course,  being  made  by  the  owners  of  the  various 
patented  processes  for  making  water-gas,  to  have  them  introduced  into  our 
large  cities;  and  the}'  advance,  as  one  of  their  strong  arguments,  the  fact  that 
the  non-luminous  gas  alone  can  be  distributed  for  heating  purposes  at  a  cost 
of  only  a  few  cents  per  thousand  feet. 

"  But  the  distribution  of  this  mixture  of  hydrogen  and  carbonic  oxide  alone, 
for  heating  purposes,  should  be  opposed  in  every  possible  way;  for  tin1  reason 


54 


that,  since  it  is  comparatively  devoid  of  odor,  its  escape  from  pipes  and  diffu- 
sion through  the  air  of  an  inhabited  room  could  not  be  detected. 

"This  mixture  contains  nearly  fifty  per  cent  of  carbonic  oxide,  which  is  one 
of  the  most  active  poison-,,  producing,  when  inhaled,  speedy  death. 

"  The  use  of  this  gas  has,  therefore  been  interdicted  on  the  continent." 

A.  C.  Humphries,  General  Manager  of  the  United  Gas  Improve- 
ment Co.,  the  largest  owners  of  water-gas  plants  in  the  world,  said  at 
the  meeting  of  the  American  Gas  Light  Association,  in  October,  1889  : 

"  1  have  made  some  investigations  in  this  line,  and  in  every  case  where  I 
have  got  into  the  use  of  '  producer  gas.'  I  found  that  the  burner  of  the  size 
which  would  ordinarily  be  used  in  a  house  was  unsafe.  In  one  case  that  Mr. 
Loomis  would  he  interested  in,  the  burner  w  as  two  inches  in  diameter,  and  it 
went  out  two  or  three  times  in  the  course  of  two  minutes,  and  had  to  be  re- 
lighted with  a  torch." 

To  which  Mr.  Loomis  himself  replied  : 

"  The  question  was  asked  with  regard  to  a  l^irner  for  '  producer  gas.' 

"/  did  not  say  that  I  -would distribute  ' fuel '-gas'  to  be  used  J or  private 
consumpt io>i  ;  on  the  contrary,  I  would  not"  i 

Thus  could  one  go  on,  if  time  permitted,  and  pile  up  incontroverti- 
ble testimony  mountain  high  as  to  the  poisonous  and  deadly  character 
of  the  gas  which  these  gentlemen  allege  they  propose  supplying  un- 
der this  ordinance,  a  gas  that  is  not  only  of  the  most  deadly  charac- 
ter, but,  being  a  pure  "fuel,'  or  uncarburetted  gas,  is  odorless,  and, 
therefore,  its  presence  can  not  be  detected  by  smell,  "coming  like  a 
thief  in  the  night,"  destroying  its  victims  while  pursuing  their  ordi- 
nary avocations. 

But  as  it  is  still  an  open  question  whether  these  gentlemen,  full  of 
fair  promises,  really  intended  doing  what  they  claim,  we  will  now  con- 
sider another  phase  of  the  question — 

COMPETITION  IN  THE  SUPPLY  OF  GAS. 

While  at  a  hearing  before  the  Board  of  Public  Works  about  ten 
years  ago  I  had  occasion  to  discuss  at  some  length  the  question  of 
competition  in  gas,  few  of  you  gentlemen  were  then  members  of 
Council,  and  I  may,  therefore,  be  excused  for  calling  your  attention 
to  some  facts  that  are  as  necessary  to  an  intelligent  understanding  of 
this  subject  now  as  it  was  then. 


55 


(George  Stevenson,  the  eminent  English  engineer,  said — and  the 
saying  has  been  so  often  quoted  that  it  may  now  be  considered  an 
axiom  in  political  economy — that — 

"WHEN  COMBINATION   IS  POSSIBLE  COMPETITION   IS  IMPOSSIBLE." 

Hon.  John  Stuart  Mill,  in  his  famous  and  now  world-renowned  es- 
say on  political  economy,  said  fifty  years  ago — and  the  experience  of 
these  years  has  but  proved  the  wisdom  of  his  saying — 

••  When  in  any  employment  the  regime  of  independent  small  producers  has 
either  never  been  possible,  or  has  been  suspended,  and  the  system  of  many 
work-people  under  one  management  has  been  fully  established,  from  that  time 
any  further  enlargement  in  the  scale  of  production  is  generally  an  unqualified 
benefit.  It  is  obvious,  for  example,  how  great  an  economy  of  labor  would  be 
obtained  if  London  were  to  be  supplied  by  a  single  gas  or  water  company  in- 
stead of  the  existing  plurality.  While  there  are  even  as  many  as  two.  this 
implies  double  establishments  of  all  sorts,  when  one  only,  with  a  small  in- 
crease, could  possibly  perform  the  whole  operation  equally  well;  double  sets 
of  machinery  and  works,  when  the  whole  of  the  gas  or  water  required  could 
generally  be  produced  by  one  set  alone;  even  double  sets  of  pipes,  if  the  com- 
panies did  not  prevent  this  needless  expense  by  agreeing  upon  a  division  of 
the  territory.  \YTere  there  only  one  establishment  it  could  make  lower  eharges 
consistently  with  obtaining  the  rates  of  profit  now  realized.  It  is,  however, 
an  error  to  suppose  that  prices  are  even  permanently  kept  down  by  the  com- 
petition of  these  companies.  Where  competitors  are  so  few  they  always  end 
by  agreeing  not  to  compete.  They  may  run  a  race  of  eheapness  to  ruin  a 
new  candidate,  but  as  soon  as  he  has  established  his  footing  they  come  to 
terms  with  him.  When,  therefore,  a  business  of  real  public  importance  can 
only  be  carried  on  advantageously  upon  so  large  a  scale  as  to  render  the 
liberty  of  competition  almost  illusory,  it  is  an  unthrifty  dispensation  of  the 
public  resources  that  several  costly  sets  of  arrangements  should  be  kept  up 
for  the  purpose  of  rendering  to  the  community  this  one  service. 

"  It  is  much  better  to  treat  it  at  once  as  a  public  function,  and  if  it  be  not 
such  a-  the  government  itself  could  beneficially  undertake,  it  should  be  made 
over  entire  to  the  company  or  association  which  will  perform  it  on  the  best 
terms  for  the  public. 

"  But  one  line  of  main  pipes  are  necessary  to  supply  the  public  wants,  and 
wherever  two  are  laid  the  consumer  must,  in  some  form  or  other,  pay  the  cost 
upon  the  unnecessary  expenditure.  Such  a  competition  has  invariably  led  to 
precisely  the  result  which  might  have  been  expected,  a  combination  of  or 
compromise  between  the  contesting  companies,  and  an  increased  rate  for  gas 
to  the  consumers  in  payment  of  interest  on  the  unnecessary  outlay  of  capital." 


Competition  can  certainly  have  no  effect  upon  the  cost  of  production  : 
that  can  and  has  been  accomplished  only  through  the  introduction  of 


56 


new  inventions  and  labor-saving  machinery,  coupled  with  the  creation 
of  new  industries  instituted  for  the  purpose  of  a  more  profitable  utili-. 

zation  of  waste  products. 

AH  that  the  advocates  of  competition  can  claim  is  that,  in  certain 
lines  of  business,  it  compels  the  producer  to  sell  at  lower  rates,  or 
forces  the  acceptance  of  smaller  profits. 

But  if  the  controllers  of  any  industry  are  themselves  satisfied  with 
a  reasonable  manufacturer's  profit;  or  if  the  law  arbitrarily  provides 
that  he  must  sell  at  a  price  so  low  that  it  will  leave  for  the  investor  but 
a  reasonable  profit  upon  his  capital,  then  all  the  conditions  exist  which 
could  be  brought  about  by  unlimited  competition. 

And  such  are  to-day  the  conditions  that  govern  the  supply  of  gas 
to  your  city.  For  the  past  quarter  of  a  century  the  controllers  have 
asked  and  received  a  manufacturer's  profit  of  but  10  per  cent  upon 
their  investment;  and  the  law  specifically  empowers  our  municipal 
Council  to  so  regulate  the  selling  price  that  the  profit  shall  not  exceed 
a  reasonable  one.  Obviously  it  can  not  go  below  that,  for,  if  it  does, 
there  is  an  end  to  business — an  end  to  production. 

THE  UNFORTUNATE   RAILROAD  STRIKES  OF   A   FEW  YEARS  AGO 

were  but  the  direct  outgrowth  of  the  popular,  but  thoughtless,  agita- 
tion of  this  subject  resulting  in  the  absolute  destruction  of  the  vested 
rights  of  many  roads,  and  the  serious  crippling  of  others.  It  became 
a  struggle  for  life,  necessitating  the  enforcement  of  otherwise  uncalled- 
for  economies,  reduction  in  wages,  and  discharge  of  employes. 

As  an  inevitable  consequence,  a  crash  followed,  and  untold  suffer- 
ing ensued.  Public  sentiment  at  once  changed,  even  to  the  extent  of 
invoking  legislative  interference  to  prevent  that  which  the  same  men 
had  before  advocated — the  cutting  of  rates — to  the  end  that  justice 
might  be  done,  confidence  be  restored,  capital  be  made  secure,  and 
the  mechanic  and  laborer  to  be  re-employed  at  living  wages.  To  some 
persons  no  facts  can  be  presented,  or  arguments  made,  which  will 
prove  satisfactory;  but  to  the  business  or  thinking  men  of  the  com- 
munity, it  is  a  self-evident  proposition  that  to  obtain  a  maximum  stand- 
ard of  excellency  in  any  undertaking,  the  capital  invested  therein 
must  be  reasonably  remunerative,  otherwise  either  the  character  of 
the  service  will  depreciate,  or  the  capital  invested  therein  will  be  with- 
drawn, and  the  business  cease  to  exist.  But  in  the  case  of  gas  com- 
panies, their  capital  can  not  be  withdrawn,  plant  curtailed,  or  ex- 
penses materially  reduced.  The  inevitable  result  must  follow,  if  the 
weaker  can  not  be  crushed  out  of  existence,  an  understanding  will  be 


9  i 

had,  territory  be  divided,  and  prices  be  increased  to  compensate  for 
former  losses  and  to  pay  dividends  on  their  duplicated  capital. 

Theory,  reason,  and  experience  conclusively  show  that  the 
public  interests  are  best  subserved  by  adopting  as  a  principle 
of  legislation,  consolidation,  and  not  competition,  in  the 
manufacture  and  delivery  of  gas. 

The  correctness  of  this  proposition  is  so  well  understood  in  Eu- 
rope— where  their  experience  is  much  more  varied  and  extensive 
than  our  own — that  they  not  only  long  since  abandoned  the  theory 
of  competition,  but  lose  no  opportunity  of  encouraging  and  enforcing 
consolidation. 

The  supply  of  Paris  with  gas  was  originally  furnished  by  eight  com- 
panies, consolidated  by  Napoleon's  orders,  now  presents  a  notable 
instance  of  the  benefits  that  arise  from  one  company  supplying  all  the 
gas  consumed  in  that  city,  where  competition  is  prohibited  by  statute. 
The  company  pays  the  municipality  a  tax  upon  the  quantity  of  gas 
manufactured,  and  pays  the  ordinary  state  taxes. 

Although  gas  is  now  furnished  to  the  citizens  at  $1.45,  net,  per 
thousand,  in  1878,  after  paying  to  their  share-holders  nearly  18  per 
cent,  they  transferred  to  the  city,  as  her  share  of  profits,  the  enor- 
mous sum  of  $1,880,000. 

In  1847,  Liverpool  was  being  supplied  by  two  companies;  a  third 
applied  to  Parliament  for  an  act  to  enable  it  to  establish  a  competi- 
tion with  them,  when,  after  a  full  and  exhaustive  inquiry,  the  Com- 
mittee of  the  Commons  to  whom  the  bill  was  referred  came  to  the 
wise  determination  to  reject  it,  on  the  understanding  that  the  then 
existing  companies  should  unite,  which  they  did,  and  this  city  has 
since  been  supplied  with  gas  by  the  same  amalgamated  company  at 
about  one-half  the  former  price. 

Indeed,  so  well  established  had  become  the  conviction  that  one  gas 
company  in  any  city  was,  for  a  multiplicity  of  reasons,  preferable  to 
two  or  more;  that  the  Committee  of  the  House  of  Commons,  presided 
over  by  the  Right  Hon.  Edward  Cordwell,  late  Minister  of  War. 
called  upon  to  inquire  into  the  operations  and  results  of  the  Metro- 
politan (las  Act  of  i860,  proposed  to  adopt  the  exclusion  of  competition 
as  a  principle  of  legislation  on  this  subject,  and,  after  a  long  and  ex- 
haustive inquiry,  recommended  the  amalgamation  of  the  several  gas 
companies  supplying  London. 

This  recommendation  was  acted  upon.  and.  instead  of  thirteen  com- 
panies, as  there  were  formerly.  London  is  now  supplied  by  one  gigan- 
tic company  on  the  north  side,  and  two  on  the  south,  and  these  two 


58 


are  now  on  the  eve  of  consolidation,  the  wisdom  of  which  action  is 
best  illustrated  by  the  fact  that  they  have  in  that  city  the  cheapest  gas 

in  the  world. 

In  this  connection,  I  desire  to  submit  extracts  from  a  communica- 
tion on  the  subject  of  the  gas  supply  of  London,  by  George  Ander- 
son, one  of  the  most  experienced  and  distinguished  gas  engineers  of 
the  present  day  : 

"  When  an  escape  of  gas  was  known  to  exist,  each  company  was  adverse 
to  opening  the  streets,  as  the  cost  of  doing  so  would  fall  upon  them,  and 
the  escape  might  be  found,  not  in  their  pipes,  but  from  the  pipes  of  the  other 
company,  and  in  such  cases  the  earth  has  been  tilled  in,  and  the  escape  left 
to  continue.  Of  course  the  public  inconvenience  was  increased  from  the 
duplication  of  mains,  and  so  was  the  expenditure  of  the  gas  companies  in 
having  to  employ  two  capitals  where  one  would  have  sufficed.  And  so  was 
the  leakage  and  condensation  more  than  doubled  by  the  duplicate  pipes,  and 
by  the  nefarious  practices  which  the  sytem  led  to. 

"After  many  years  the  companies  came  to  see  their  mutual  follies,  and 
private  arrangements  began  to  arise,  so  that  they  would  not  canvass  each 
other's  customers,  nor  take  a  customer  until  he  could  show  his  receipt  for 
payment  of  the  last  term.  But  the  companies  found  they  could  not  depend 
upon  the  honesty  of  each  other,  and  frequent  bickerings  arose. 

'•  By  and  by,  in  1852-3,  the  company  with  which  I  was  employed  proposed 
to  two  companies  with  whom  it  competed  that  a  line  should  be  drawn  on  the 
map,  and  an  arrangement  made  by  which  each  should  supply  the  district 
nearest  to  it,  and  buy  up  the  pipes  of  the  others  lying  within  it.  This  was 
accomplished.  The  principle  extended.  Other  companies  did  the  same,  and 
now,  for  some  fifteen  years,  competition  in  the  sale  of  gas  has  become  extinct 
in  this  metropolis.  .  .  .  Agitation  will  sometimes  arise  without  any  just 
cause.  Local  politics  frequently  divides  people,  and  needy  and  unprincipled 
adventurers  sometimes  have  sufficient  power  to  throw  the  apple  of  discord 
into  a  community  by  fallacious  and  unprovable  assertions,  but  if  the  public 
can  see  that  a  gas  company  is  making  exertions  to  meet  their  v>ants,  it  seldom 
goes  out  of  its  paths  to  foster  novelties  out  of  its  line,  and  about  which  there 
is  always  a  considerable  amount  of  risk." 

Bronson  S.  Keeler,  in  a  well-digested  subject  on  competition  in  gas, 
which  appeared  in  the  "  Forum  "  one  year  ago,  says : 

"Municipal  lighting  is  in  its  nature  a  monopoly,  and  competition  in  it  is  an 
impossibility." 

He  then  goes  on  to  recite  the  experiences  in  Albany,  Baltimore, 
Buffalo,  Brooklyn,  Chicago,  Charleston,  Detroit,  Harrisburgh,  Jersey 
City,  Lancaster,  Memphis,  Newburgh,  New  Orleans,  New  York, 


59 


Poughkeepsie,  Providence,  Patterson,  St.  Louis,  Savannah  and  Tren- 
ton. In  each  of  which  cities  the  proceedings  and  results  were  the 
same  ;  expressed  as  follows  : 

"  The  streets  were  torn  up,  travel  was  obstructed,  business  was  impeded, 
and  in  many  cities  the  pavements  were  ruined.  As  soon  as  the  new  company 
began  to  manufacture  the  prices  fell,  and  for  a.  time  the  citizens  apparently 
obtained  cheaper  gas.    Then  came  the  logical  end. 

"  The  buyers  were  many  and  the  sellers  few,  and  it  was  easier  to  combine 
than  compete.  The  companies  'pooled,  'combined'  or  '  sold  out; '  the  price 
of  gas  was  advanced  from  50  to  150  per  cent,  and  the  consumers  had  to  pa\ 
interest  on  duplicate,  and  sometimes  triplicate  plants,  where  one  was  suf- 
ficient. 

"They  always  promise  cheaper  gas  to  get  the  franchises,  but  the  real  inten- 
tion is  to  sell  out  as  soon  as  the  old  company  can  be  brought  to  terms. 

"There  is  not  a  city  in  the  country  to-day  -which  has  competition  in  gas, 
and 

THERE   NEVER   WAS    A    SECOND    COMPANY    ORGANIZED    WHICH  INTENDED 

TO  COMPETE. 

'•It  is  not  the  gas  companies,  but  the  people  themselves  who  are  at  fault; 
and  it  is  a  settled  conviction — not  alone  with  gas  men,  but  with  students  of 
the  question  as  well — that  rather  than  submit  to  the  ridiculous  and  expensive 
farce  of  attempting  so-called  competition,  it  is  better  to  give  the  business  to 
one  company  under  equitable  restrictions  as  to  price  of  product. 

Never  in  the  history  of  gas  business  in  this  country  has  there  been 
a  more  exhaustive  examination  than  that  made  by  the 

SENATE  COMMITTEE  OF  THE   NEW   YORK  LEGISLATURE, 

regarding  the  conditions  of  the  gas  supply  to  New  York  City  previous 
and  subsequent  to  the  consolidation  of  the  leading  companies  of  that 
city. 

From  the  report  of  this  Committee,  the  following  extracts  are  sub- 
mitted : 

-  The  competition  of  different  companies  in  the  same  streets  and  avenues 
while  of  temporary  advantage  in  reducing  the  price  of  gas  during  the  com- 
petition, has.  in  the  past,  always  resulted  in  combination  and  a  higher  price 
for  gas. 

It  appears,  therefore,  that  competition  amongst  the  gas  companies  in  the 
city  of  New  York  has  been  temporary  in  duration,  and  resulted  in  no  perma- 
nent advantage  to  consumers  in  the  way  of  a  reduction  in  price. 

"In  the  city  of  Brooklyn,  the  history  of  competition  is  similar:  there,  the 
price  of  gas  seems  to  be  excessive,  and  much  higher  than  in  the  ritv  of  New 
York.  The  price  is  maintained  by  a  voluntary  apportionment  of  territorv  by 
the  several — seven — companies,  so  that  no  benefit  ensues  by  reason  of  the  ex- 
istence of  independent  gas  corporations. 


60 

"  The  Committee  were  advised  that  in  other  cities  like  results  have  followed 
spasmodic  efforts  of  competing  companies  to  outrival  each  other  in  the  ac- 
quirement of  custom. 

"In  a  large  city  like  New  York,  whose  streets  are  daily  occupied  for  the 
purposes  of  ceaseless  traffic,  the  multiplication  of  mains,  and  the  laving  and 
repairing  of  the  same,  is  an  evil  of  consequence. 

••  J  his  duplication  of  mains  is  a  duplication  of  capital  upon  which  div- 
idends are  expected  to  be  paid  in  the  consumers'  gas  hills." 

General  Charles  Roome,  president  of  the  Consolidated  Gas  Com- 
pany, and  the  oldest  and  universally  conceded  to  be  the  most  talented 
gas  engineer  of  his  day  in  this  country,  stated,  while  under  examina- 
tion before  the  Committee,  as  follows  : 

M  If  there  was  no  competition,  the  price  of  gas  would  be  reduced  just  as  fast 
as  improvements  in  our  business  or  savings  in  expenses  will  admit. 

"  The  greater  the  consumption  under  one  management  the  cheaper  we  can 
make  and  sell  gas,  and  the  cheaper  we  can  sell  it  the  more  will  be  sold  and 
consumed;  continued  reductions  and  constantly  increased  sales,  are  to  the 
mutual  benefit  of  the  company  and  consumer. 

'  If  there  had  been  no  opposition  to  the  Manhattan  Company  we  would 
have  been  selling  gas  fifteen  years  ago  at  two-thirds  the  price  now  being 
charged." 

James  II.  Armiiigton,  the  distinguished  engineer  and  president  of 
the  Brooklyn  Gas  Company,  testified  before  same  Committee,  as  fol- 
lows : 

"  What,  in  your  opinion,  is  the  effect  of  competition  between  gas  com- 
panies in  large  cities  like  New  York  and  Brooklyn? 

"A.  So  far  as  I  have  looked  into  the  subject  I  have  never  known  an  instance 
where  it  did  not  increase  the  price  of  gas. 

"Q^  Explain  to  the  Committee  why. 

"A.  It  seems  to  me  patent  to  everybody  why;  if  a  gas  company,  for  in- 
stance, lavs  a  main  in  Broadway,  or  any  other  thoroughfare,  of  sufficient  di- 
mensions to  supplv  all  the  gas  required,  that  capital  is  already  invested,  and 
if  anybody  else  comes  in  and  lays  pipes  in  the  same  place,  somebody  has  to 
pay  the  interest  on  this  additional  capital — and  that  somebody  is  the  con- 
sumer" 

The  District  of  Columbia,  being .  under  National  control,  Con- 
gressional Committees  are  year  after  year  called  upon  to  consider  the 
claims  of  opposition  interests,  procurers  of  franchises,  and  gas  cranks. 

As  these  committees  are  generally  composed  of  educated,  intelli- 
gent, and  representative  men  from  different  sections  of  our  country,. 


61 


with  unusual  opportunities  for  observation,  their  opinions  are  certainly 
entitled  to  more  than  ordinary  consideration,  and  their  judgment  can 
not  but  be  regarded  as  conclusive. 

As  it  is  advisable  to  economise  time  as  much  as  possible,  I  may  be 
excused  for  quoting  but  from  a  few  of  the  many  reports  made,  all 
to  the  same  effect. 

"77/r  Committee  of  the  District  of  Columbia,  to  whom  -was  referred 
House  Bills  Xos.  924,  1368,  1527,  and  1705,  all  relating  to  the  organization 
of  gas  light  com panies  in  the  City  of  Washington,  report  as  follows: 

•■  The  Committee  are  of  the  opinion  that  in  the  furnishing  of  illuminating 
gas  in  the  City  of  Washington,  the  United  States,  the  District  of  Columbia, 
and  the  people  of  said  district,  have  common  interests,  namely,  good  and 
cheap  illuminating  gas.  The  price  of  such  gas  depends  upon  the  cost  of  con- 
struction and  maintenance  of  gas  works,  and  the  appurtenances,  and  the 
amount  of  gas  consumed. 

"Two  gas  works  would  double  the  cost  without  any  increase  of  consump- 
tion of  gas,  and  would  necessitate  the  tearing  up  of  the  sidewalks,  streets,  and 
crossings. 

"A  law  authorizing  other  parties  to  construct  gas  works  is  liable  to  abuse 
and  do  great  public  injury,  by  forcing  the  present  company  to  buy  them  off, 
and  necessarily  increasing  its  capital  stock  or  liabilities,  and  thereby  increas-  • 
ing  the  price  which  the  said  company  would  be  reasonably  justified  in  charg- 
ing for  gas. 

"  For  the  above  reasons,  the  Committee  are  of  the  opinion  that  authority 
should  not  be  given  to  any  other  person,  company,  or  corporation  to  erect  and 
maintain  gas  works  in  the  City  of  Washington.1'' 

•'  The  Committee  of  the  District  of  Columbia,  to  whom  was  referred  the 
bills  H.  R.  2.^00  and  H.  R.  2,514,  together  with  various  petitions,  pro- 
tests, and  other  papers,  all  relating  to  the  organization  of  gas  light  com- 
panies in  the  City  of  Washington,  having  had  the  same  under  careful  con- 
sideration, respectfully  submit  the  following  report: 

"The  object  to  be  sought  in  devising  means  for  the  illumination  of  Wash- 
ington Citv  is  an  illuminating  material  of  good  quality,  that  shall  be  sold  at  a 
fair  and  just  rate,  for  public  and  private  consumption,  and  distributed  through- 
out the  city  in  such  a  manner  as  will  best  subserve  the  interests  and  conveni- 
ence of  its  inhabitants.  Will  this  object  be  secured  bjr  a  pluralitv  of  gas 
light  companies?  In  the  opinion  of  your  Committee,  it  will  not.  The  quan- 
tity of  gas  consumed  will  remain  the  same,  while  the  cost  of  its  manufacture 
and  distribution  will  be  increased  by  reason  of  the  works,  pipers,  appurte- 
nances, and  labor  necessary  for  each  additional  company. 

''The  injury  to  the  city,  the  interruption  to  public  travel,  the  detriment  to 
all  business,  by  tearing  up  streets,  pavements,  and  reservations,  w  ill  be  in- 
creased in  the  same  ratio.  The  advantages  offered  to  be  set  over  against  these 
manifest  objections  are,  in  one  bill,  a  cheaper  gas  for  all  consumers;  in  the 
other,  gas  of  great  illuminating  power,  to  be  furnished  at  a  cheaper  rate  for 


62 


use  in  the  public  buildings  and  reservations,  and  price  to  private  consumers 
remaining  as  at  present.  If  these  advantages  were  of  real  and  enduring  value, 
and  were,  moreover,  such  as  could  be  secured  in  no  other  way,  even  then  the 
wisdom  of  their  purchase  by  the  proposed  expenditure  of  capital  and  conveni- 
ence would  be  doubtful.  But  when  it  is  seen  that  they  are  easily  within  the 
reach  of  'ess  expensive  methods,  and  are  nominal  and  transient  in  the  plans 
submitted,  the  unwisdom  of  securing  them  in  that  way  is  clearly  apparent. 
The  history  of  gas  light  companies,  so  far  as  is  known  to  your  Committee, 
is  almost  invariably  in  this  regard:  that  when  opposition  has  started  it  has 
either  oeen  for  the  purpose  of  compelling,  or  has  resulted  in,  a  purchase  of 
one  company  by  the  other,  or  a  division  of  territory  by  them,  with  uniform 
rates;  so  that,  although  competition  may  lower  the  price  of  gas  for  a  time,  it 
always  ends  in  a  compromise  between  the  companies,  and  an  increased  rate 
for  gas  to  the  consumers,  to  pay  the  interest  on  the  unnecessary  outlay  of  cap- 
ital. This  fact  has  long  been  recognized  in  Europe,  where  London  is  the  only 
city  ol"  importance  in  which  more  than  one  gas  light  company  is  allowed. 
Your  Committee  think,  with  Stuart  Mill,  that  'it  is  an  unthrifty  dispensation 
of  the  public  resources  to  have  several  costh'  sets  of  arrangements  kept  up 
for  the  purpose  of  rendering  to  the  community  one  service,  when  one  set 
could  perform  the  service  equally  well.' 

"  For  these  reasons,  aforesaid,  your  Committee  are  of  the  opinion  that  no 
other  gas  light  company  should  be  incorporated  in  the  City  of  Washington, 
•  and  therefore  recommend  that  neither  of  the  above  named  bills  do  pass." 

"The  Committee  for  the  District  of  Columbia  to  -whom  was  referred 
House  />'/'// 7,487  to  incorporate  the  United  States  Qas  and  Fuel  Company, 
and  for  other  purposes,  submit  the  following  report : 

"Experience  has  demonstrated  that  opposition  gas  companies  are  not  bene- 
ficial, but  that  they  are  injurious  to  the  interests  of  the  citizens,  and  instead 
of  promoting  cheap  gas  they  prevent  and  retard  it  by  greatly  increasing  the 
capital  necessary  to  carry  on  the  business. 

"The  Washington  Gas  Light  Company  has  to-day  capital  and  plant  suffi- 
cient to  supply  twice  the  quantity  of  gas  required  by  the  city;  to  permit  an- 
other company  to  enter  into  competition  woidd  be  to  simply  increase  the 
capital  without  increasing  the  business. 

"  Why  should  this  be  done  when  there  is  no  good  reason  or  public  necessity 
for  it,  and  when  it  amounts  to  a  moral  certainty  that  both  companies  will 
combine  ? 

"  In  the  language  of  Mr.  George  Stevenson,  '  When  combination  is  possible, 
competition  is  impossible.' 

"And  it  is  a  well  known  fact  that  every  opposition  gas  company  started  in 
this  country,  after  a  short  term  of  competition  has  either  sold  out,  bought  out, 
combined,  or  pooled  earnings  with  the  old  company. 

"  While  the  brief  competition  lasted,  of  course  cheap  gas  prevailed,  but 
when  the  inevitable  combination  takes  place  the  people  are  made  to  pay  the 
expenses  of  the  war. 

"  We  assert  that  when  one  gas  company  is  able  and  willing  to  supply  all 
demands  at  a  fair  price,  it  is  not  wisdom  to  permit  an  unnecessary  increase 


63 


of  capital  by  allowing;  another  party  to  enter  the  field,  thereby  rendering  both 
capitals  unprofitable  by  ruinous  competition  while  the  competition  lasts,  and 
to  be  made  up  afterward  by  exactions  on  the  public." 

"  The  Committee  on  the  District  of  Columbia,  to  whom  ivas  referred  House 
bill  No.  54,  beg  leave  to  submit  the  following  report: 

"This  bill  provides  for  the  incorporation  of  another  gas  light  company  in 
this  District  besides  the  two  already  in  existence — one  in  Washington  City 
and  the  other  in  Georgetown. 

So  far  as  we  have  been  able  to  obtain  information,  the  gas  furnished  to 
the  people  of  the  District  gives  general  satisfaction  both  as  to  purity  and 
power. 

"  The  history  of  gas  light  companies  shows  that  no  machinery  of  law  has 
been  devised  which  can  prevent  the  purchase  of  one  company  by  the  other 
or  prevent  a  division  of  their  field  of  operations;  so  that  though  competition 
may  temporarily  reduce  the  price,  it  invariably  leads  to  an  increased  outlay 
of  capital. 

"  In  addition  to  these  facts,  the  establishment  of  other  companies  would  in- 
volve costly  and  vexatious  changes  in  streets  already  constructed,  interfering 
seriously  with  traffic  and  travel. 

"  For  these  reasons  your  Committee  report  this  bill  with  the  recommenda- 
tion that  it  do  not  pass. 

"  Mr.  Spooner,  from  the  Senate  District  Committee,  reporting  upon  the 
Senate  resolution  directing  the  Committee  to  inquire  into  the  expediency, 
etc.,  says: 

"The  Committee  deems  it  unwise  to  incorporate  other  gas  companies  for 
operation  within  the  City  of  Washington  in  competition  with  the  existing 
company. 

"  If  adequate  means  of  protecting  the  public  against  extortionate  charges 
for  gas  and  gas  service  in  the  city  exist  other  than  by  the  competition  of  other 
companies  to  be  created  by  Congress,  it  seems  too  clear  for  debate  that  such 
means  should  first  be  exhausted,  for  it  is  repugnant  to  the  natural  and  gen- 
eral sentiment  of  the  community  that  the  streets  of  the  city,  made  at  vast  ex- 
pense exceptionally  beautiful,  should  be  torn  up  in  order  to  furnish  to  other 
companies  means  of  competition. 

"  Moreover,  it  is  quite  certain  that,  reasoning  from  the  general  experience 
of  municipalities  in  the  United  States,  competition  among  gas  companies  is 
a  very  uncertain  and  inefficient  method  of  reducing  permanently  the  price  of 
gas  to  consumers." 

While  legislative  bodies  throughout  our  country  have  very  generally 
recognized  that  in  the  matter  of  gas  and  water  supply  public  interests 
are  best  subserved  by  adopting  as  a  principle  of  legislation,  consoli- 
dation, and  not  competition,  Massachusetts  is,  I  believe,  the  only 
state  in  the  Union  which  has  taken  such  an  advanced  position  as  to 
limit  the  multiplication  of  gas  companies  through  authority  granted  a 


64 

Board  of  Gas  and  Electric  Light  Commissioners,  in  whose  first  report 

may  be  found  the  following  : 

"  In  regard  to  the  admission  of  another  gas  company  into  Boston,  to  com- 
pete with  the  Boston  Gas  Light  Company,  we  are  firmly  of  the  opinion  that 
no  suc  h  competition  should  be  permitted,  and  this  opinion  has  been  formed 
from  a  study  of  numerous  cases  of  unsuccessful  competition  in  supplying  gas 
to  cities  in  both  the  United  States  and  Europe. 

"  By  successful  we  mean  that  the  competition  has  not  succeeded  in  perma- 
nently low  ering  the  price  of  gas  to  the  citizens.  We  therefore  advise,  most 
decidedly,  against  the  admission  of  another  private  gas  corporation  within  the 
limits  of  Boston,  to  compete  in  the  sale  of  gas  with  the  existing  companies,  as 
being  disadvantageous  to  the  public  generally." 

And  in  the  last  report  of  this  Commission,  issued  but  a  few  weeks 
ago,  we  find  this  statement  in  regard  to  the  propriety  of  allowing  one 
company  to  do  all — both  gas  and  electric — lighting  : 

"Following  the  policy  indicated  by  the  Legislature,  it  has  great  confidence 
in  the  wisdom  of  allowing  but  one  company  to  do  all  the  lighting. 

"In  construing  and  applying  the  recent  statutes  according  to  their  true 
meaning  and  intent,  the  Commissioners  have  been  called  upon  in  several 
cases  of  appeal  to  deny  new  companies  the  privilege  of  going  into  business. 

"  Unless  it  was  made  clear  that  a  new  compani  could  perform  the  work 
and  supply  a  community  better  and  more  cheaply  than  could  he  done  by  the 
existing  company,  we  have  felt  obliged  and  think  it  wise  not  to  license 
another  company,  believing  this  course  to  he  most  beneficial  to  the  perma- 
nent interests  of  the  city  or  town." 

The  Brooklyn  Eagle,  of  September  5,  1885,  contains  the  following- 
leading  editorial,  in  which  is  given 

ax  englishman's  views  on  COMPETITION. 
"Mr.  Robert  P.  Spice,  an  Englishman,  now  visiting  this  country,  who  is  an 
authority  on  the  manufacture  of  illuminating  gas,  has,  in  reply  to  some  ques- 
tions by  the  New  York  Times,  written  a  letter  to  that  enterprising  journal  on 
the  problems  presented  to  the  companies  in  the  cities  of  New  York  and 
Brooklyn.  The  chief  evil  to  which  he  calls  attention  is  one  often  pointed 
out  by  the  Eagle,  namely,  the  over  investment  of  capital  and  the  consequent 
imposition  of  exorbitant  prices  in  order  to  pay  interest.  Mr.  Spice  modestlv 
disclaims  any  ability  to  speak  conclusively  concerning  a  situation  complicated 
by  many  influences  that  can  not  be  accurately  weighed  by  a  stranger,  but 
that  he  has  not  much  to  learn,  the  following  passage  indicates: 

"  No  doubt  I  ought  to  be  able,  after  forty  years'  experience  and  an 
extensive  practice  in  all  parts  of  the  old  country  as  a  designer  and  con- 
structor of  gas  works,  and  the  adviser  of  gas  companies  and  corporate 


(55 


bodies  concerning  gas  supply,  to  give  an  opinion  of  ;i  reliable  charac- 
ter on  all  the  questions  involved  in  the  manufacture  and  supply  of  gas 
under  anv  conceivable  conditions.  But  when  the  question  in  any  given 
case  includes  important  political  considerations,  it  is  by  no  means  a 
simple  engineering  issue  to  be  demonstrated.  And  in  the  case  of  New 
York  and  the  City  of  Brooklyn,  in  which  I  am  just  now  a  sojourner, 
the  problem  is  complicated  by  what  1  would  call  grave  political  em- 
barrassments, or  rather  the  absence  Of  governmental  authority  and 
statutory  regulations  such  as  would  prevent  the  waste,  inseparable  from 
the  foolish  and  extravagant  application  of  capital,  in  the  separate  un- 
dertakings by  which  the  two  eities  are  at  present  supplied. 

"The  true  answer  to  the  question  why  the  people  of  Brooklyn  are  required 
to  pay  at  least  a  third  more  for  their  gas  light  than  it  ougnt  to  cost  is  implied 
if  not  explicitly  given  in  these  few  sentences.  Political,  not  industrial,  con- 
siderations have  wrought  the  evil;  the  political  striker  rather  than  the  cap- 
italist seeking  large  dividends  is  the  person  most  to  blame.  Under  the  pre- 
text of  giving  the  public  the  benefit  of  competition,  the  highwaymen  who 
shape  legislation  have  established  half  a  dozen  companies  where  one  would 
have  been  enough,  and  by  subsequent  combination  imposed  the  rates  required 
to  pay  this  host  of  unnecessary  officers  and  yield  a  return  on  the  capital  need- 
lessly sunk  in  the  utterly  unnecessary  plants.  The  territory  is  cut  up  to  the 
end  that  the  political  adventurers  shall  have  charters  to  sell,  and  when  they 
are  sold  the  consumers  are  presented  with  the  alternative  of  submitting  to  the 
term^  of  the  pirates  thus  brought  into  the  field  or  going  without  light.  How 
the  people  have  been  at  once  deluded  and  swindled  by  operations  of  this  kind, 
Mr.  Spice  indicates: 

"  This  complication  has  arisen  from  the  desire  on  the  part  of  the  gas 
consumers,  and  possiblv  also  on  the  part  of  the  city  authorities,  to  seek 
to  benefit  themselves  by  competition,  than  which  nothing  can  possibly 
be  more  illusive,  as  I  will  attempt  to  show.  Suppose,  for  instance,  the 
case  of  a  citv  supplied  bv  a  single  companv  bv  means  of  a  gas  work 
and  a  distributory  system  of  mains  quite  equal  to  the  requirements  of 
the  time,  but  in  the  absence  of  all  reasonable  restrictions  as  to  quantity 
and  price  the  citizens  feel  themsel  ves  aggrieved  with  either  the  price 
charged  or  the  quality  of  the  gas  supplied,  or  both,  and  resolve  to  ob- 
tain relief  by  establishing  a  second  company  to  compete  with  the  first; 
what  happens?  Why  just  this:  A  second  capital  becomes  established 
to  do  the  same  business  which  has  been  done  by  the  first,  and  out  of 
the  same  source  of  revenue  dividends  on  two  capitals  have  to  be  paid 
instead  of  one;  in  addition  to  which  all  the  fixed  charges,  such  as 
salaries  of  officers,  office  expenses,  etc.,  are  included  in  similar  propor- 
tion. Probably  the  first  effect  of  the  folly,  for  such  it  has  proved  to  be, 
may  he  ;t  reduction  in  the  price  charged  for  gas;  but  universal  experi- 
ence has  proved  that  where  amalgation  is  possible,  competition  is  im- 
possible. Share-holders  of  the  two  companies  sooner  or  later  tire  of 
supplying  gas  consumers  at  a  price  which  does  not  yield  a  profit  on 
the  capital  employed,  and  they  agree  either  to  amalgamate  or  make  an 
equivalent  arrangement  by  means  of  which  they  can  raise  the  price 
and  so  restore  prosperity  to  the  exchequer  of  each.  The  result  is  that 
if  half  a  dollar  net  profit  per  1,000  feet  of  gas  sold  would  pay  a  fair 
dividend  on  the  capital,  a  dollar  per  1,000  feet  would  be  required  in  the 
shape  of  profit  on  every  1.000  feet  sold  to  pay  the  same  dividend  as  be- 
fore on  double  the  amount  of  capital. 


60 


"  The  people  of  Brooklyn  ean  have  no  difficulty  in  illustrating  the  truth  of 
this  diagnosis  out  of  their  own  experience.  Captured  by  a  fraudulent  anti- 
monopoly  cry,  they  found  themselves  years  ago  deprived  of  a  real  remedy, 
and  turned  over  to  the  tender  mercies  of  several  companies,  any  one  of  whom 
might  have  been  held  to  reason  if  standing  alone,  but  all  of  whom,  by  the 
financial  necessities  of  their  position,  made  common  cause  against  the  con- 
sumer. What  the  public  needed  was  not  more  companies,  not  the  existence 
of  a  wasteful  competition,  but  laws  holding  the  elder  companies  up  to  a  well 
defined  quality  of  service,  and  down  to  an  equally  well  defined  scale  of 
profits.  To-day,  when  complaint  is  made,  it  is  shown,  and  truthfully  shown, 
that  several  of  the  companies  are  not  earning  more  than  five  or  seven  per 
cent  on  their  capital,  and  this  is  a  reason  why  they  can  not  be  forced  to  re- 
duce their  prices,  but  if  the  right  course  had  been  pursued,  the  people  of 
Brooklyn  would  be  in  a  position  to  concede  ten  or  fifteen  per  cent  to  the 
capitalists  and  get  their  gas  for  fully  a  third  less  than  the  present  price,  be- 
cause there  would  be  so  much  less  capital  to  pay  interest  on.  Reasoning 
in  this  line  Mr.  Spice  says: 

"  In  London  we  have  only  three  gas  companies  at  the  present  time, 
whereas  we  had  thirteen  some  years  since.  When  we  had  thirteen  the 
price  paid  for  gas  was  about  $1.50  per  1,000  feet,  but,  by  the  reduction 
of  the  number  of  the  companies  within  the  area  of  the  metropolis, 
and  concentration  in  large  works,  instead  of  manufacturing  the  gas  at 
a  great  number  of  small  stations,  the  same  or  larger  dividends  are  paid 
on  the  capital  out  of  the  profits  made  at  the  present  price  of  sixty- 
seven  cents  per  1,000  feet.  This  state  of  things  in  London  has  been  led 
up  to  by  abolishing  competition  under  a  well  regulated  monopoly  so 
framed  as  to  secure  the  interests  of  the  consumer  and  the  companies, 
which,  in  point  of  fact,  are  absolutely  identical.  I  need  hardly  say 
that  the  word  'monopoly  '  is  as  much  hated  in  England  as  it  can  be  in 
America,  and  it  seems  difficult  to  exclude  the  idea  of  abuse  from  asso- 
ciation with  it,  but  the  argument  that  monopoly  leads  to  abuse  has  no 
force  when  the  abuse  of  a  given  monopoly  is  prevented  by  the  strong 
regulating  hand  of  the  law.  Under  the  well  regulated  monopolv  in  re- 
gard to  the  supply  of  gas  in  London,  the  paid  up  capital  amount  to 
$69,070,710,  the  quantity  of  gas  sold  21,118,889,000  cubic  feet,  and  74 
cents  per  1,000  feet  sufficed  to  pay  10  per  cent  on  this,  inclusive  of  in- 
terest on  the  the  loan  capital. 

"  The  readers  of  the  Eagle  have,  we  trust,  got  beyond  the  point  where  the  mere 
word  'monopoly  '  can  scare  them.  The  Eagle  has  written  to  little  purpose  for 
years  if  it  has  not  convinced  them  that  certain  businesses  are  and  ought  to  be 
monopolies,  and  that  the  real  problem  is  not,  as  the  sham  reformers  pretend, 
to  bring  in  competition,  but  to  establish  intelligent  and  effective  regulation. 
A  'well  regulated  monopoly,'  as  Mr.  Spice  phrases  it,  is  what  must  be  aimed 
at  wherever  public  franchises  are  bestowed,  if  the  ends  of  the  community  are 
promoted,  and  it  is  against  this  kind  of  regulation,  which  the  overgrown  cor- 
porations as  well  as  the  political  spoilsmen  fight,  rather  than  against  a  form 
of  competition  which  involves  no  more  than  a  new  combination  to  fleece 
the  common  citizen.  How  to  undo  what  has  been  done,  however,  is  much 
more  difficult  than  to  specify  the  evils.  At  all  events,  the  Eagle  will  not  ad- 
dress itself  to  that  task  at  present;  but,  while  leaving  the  past  undisturbed., 


67 


the  truth  obviously  dcducible  from  what  has  just  been  said  is  that  the  busi- 
ness of  chartering  new  gas  companies  in  Brooklyn  ought  to  be  regarded  as 
elosed.  The  Eagle  held  to  this  view  when  the  knavish  element  in  the  last 
Legislature  was  called  upon  by  a  lot  of  foolish  newspapers  and  equally  fool- 
ish gas  consumers  to  keep  the  door  of  what  was  called  competition  wide  open, 
and  we  have  become  more  confirmed  in  it  with  the  passage  of  time.  Com- 
petition is  a  sham,  a  snare,  a  fraud,  a  mere  device  for  enabling  political 
operators  to  secure  something  for  nothing.  Regulation  is  the  remedy  and 
ought  to  be  the  only  watchword  with  reformers  who  address  themselves  to 
the  abuses  in  this  particular  field  of  municipal  economy. 

THE.  EMINENT  JURIST,  JUDGE  M.   T.    COOLEY,  OF  MICHIGAN, 

has  given  expression  to  his  views  upon  this  subject  in  the  following 
terms :  ^ 

"  The  supply  of  public  conveniences  to  the  cities  is  commonly  a  monopoly, 
and  the  protection  of  the  public  against  excessive  charges  is  to  be  found, 
first,  in  the  fact  that  low  prices  generally  extend  the  market,  and,  second,  in 
the  municipal  power  of  control. 

"  Public  policy  requires  that,  for  supplying  light  or  water,  there  should  be 
but  one  corporation,  because  one  can  perform  the  service  at  less  rates  than 
two  or  more,  and  in  the  long  run  will  be  certain  to  do  so. 

"  But  scheming  men  make  periodical  attacks  upon  corporations  existing  for 
these  and  similar  purposes,  and  with  a  popular  cry  for  a  watchword,  they  can 
always  enlist  local  interest  in  their  favor. 

"  If  they  succeed  in  obtaining  a  rival  franchise,  the  subsequent  history  is 
commonly  this:  A  war  of  rates  for  a  season,  and  then  either  a  sale  of  one 
franchise  to  the  owners  of  the  other,  a  division  of  the  territory,  or  an  agree- 
ment upon  charges.         •  . 

"The final  result  is  that  the  two  supply  the  market  at  a  greater  cost  than 
one,  and  the  additional  cost  is  paid  by  the  .public. 

"  The  legislation  which  exposes  a  great  property  invested  in  a  public  enter- 
prise to  disastrous  risks  offers  a  direct  temptation  to  irregular  and  crooked 
proceedings. 

"  If  men  solicit  from  a  City  Council  a  franchise  which  they  can  not  legiti- 
mately make  profitable,  it  is  a  natural  inference  that  they  propose  either  to 
use  it  as  a  trading  property  or  to  some  way  find  their  profit  in  the  manipula- 
tion of  future  Councils. 

'•The  true  policy  of  the  state  is  to  give  due  and  full  protection  to  corporate 
property,  and  at  th^  same  time  insist  upon  a  faithful  performance  of  corporate 
duties." 


68 

From  the  very  nature  of  the  business, 

IT  IS  IMPOSSIBLE  TO  MAINTAIN  COMPETITION  IN  THE  DELIVERY  OF 
EITHER   WATER  OR  OAS. 

And  there  is  not  to-day  in  this  whole  country — or,  so  Jar  as  I  am  aware 
in  the  world — a  single  competing  gas  company  :  and  it  is  equally  true  that 
there  is  not,  in  the  whole  United  States,  a  single  city  approximating 
to  the  prominence  of  Cincinnati,  which  has  not  been  raided  at  some 
time  or  other  under  the  plea  of  furnishing  cheaper  gas :  and  yet  there 
is  not  to-day  a  single  one  of  these  cities  that  is  not  suffering  the  penalty  of  its 
foolishness  by  paying  from  25  to  50  per  cent  more  for  gas  than  is  being 
charged  in  this  city. 

I  have  already  shown  you  that  the  expenses  of  production  decreases 
in  an  inverse  ratio  to  the  increase  of  deliveries  under  one  manage- 
ment. Had  Cincinnati  the  population  of  New  York  City,  or  were  we 
to-day  sending  out  the  same  quantity  of  gas  that  is  being  sold  in  that 
city,  we  could  well  afford  to  sell  gas  for  fifty-five  cents  per  tJiousand,  and 
make  a  profit  exceeding  that  we  are  now  receiving.  New  York's  an- 
nual consumption  is  nearly  ten  million  thousand,  so  that  the  citizens 
of  that  city  are  now  paying  seven  and  a  half  million  dollars  per  yea/ 
more  than  they  would  have  had  to  pay  had  they  enforced  consolida- 
tion, instead  of  encouraging  competition. 

Philadelphia,  with  three  million  thousand  consumption,  is  now,  un- 
der municipal  management,  paying  Si. 50  per  thousand  cubic  feet,  or 
double  the  price  we  would  be  glad  to  receive  were  we  sending  out  the  same 
volume  of  gas. 

Chicago  has  ended  the  gas  war  by  a  consolidation,  necessitating 
paying  dividends  on  four  times  the  capital  necessary  to  do  the  busi- 
ness. Give  us  their  three  and  a  half  million  thousand  output,  and 
we  could  well  afford  to  furnish  it  for  65  cents  per  thousand,  or  save 
the  citizens  of  that  city  over  two  million  dollars  per  year. 

Give  us  the  volume  of  patronage  enjoyed  by  the  gas  companies  of 
Brooklyn,  N.  Y. — two  million  thousand — and,  in  place  of  $1.60  per 
thousand,  which  they  are  now  charging,  we  would  be  onty  too  glad  to 
make  the  same  deliveries  for  75  cents. 

Thus  saving  to  the  citizens  of  that  city  nearly  one  and  three-quarter 
million  dollars  every  year. 

Thus,  gentlemen,  are  the  citizens  of  these  four  cities  to-day  paying 
over  thirteen  million  dollars  per  year  for  gas  more  than  they  would 
have  had  to  pay  had  they  acted  wisely,  as  the  citizens  of  this  city  have 
acted,  by  doing  just  what  they  long  since  did  in  London,  Paris,  Liv- 


69 


erpool,  and  other  large  European  cities — confine  the  supply  to  one 
management,  and  control  that  management  by  wise  and  judicious  leg- 
islation. 

If  any  advantage  could  possibly  accrue  from  the  introduction  of 
another  company,  having  its  own  or  separate  district,  it  would  appear 
to  be  only  that  the  citizens  and  city  might  have  the  pleasure  of  deal- 
ing with  two  so-called  monopolies  instead  of  one,  and  of  paying  prices 
that  would  insure  reasonable  dividends  on  double  the  necessary  capi- 
tal, coupled  with  the  increased  expenses  and  annoyance  of  a  duplica- 
tion of.  works,  mains,  offices,  and  management. 

And,  if  this  be  desirable,  there  certainly  would  appear  to  be  equally 
valid  reasons  for  a  still  greater  extension  of  such  privileges  — which 
would,  undoubtedly,  be  the  case  if  a  precedent  be  once  set  or  an  op- 
portunity afforded — resulting,  in  the  end,  in  having  in  this  city  a  state 
of  affairs  similar  to  those  now  existing  in  the  cities  of  New  York, 
Brooklyn,  Chicago,  and  Baltimore. 

We  admit,  that  if  any  existing  monopoly  be  uncontrolled,  either  by 
competition  or  legislation,  there  would  certainly  be  grave  danger  that 
injustice  might  be  done  the  public  by  charging  exorbitant  prices  for 
an  article  of  prime  necessity. 

But,  happily,  in  this  case,  no  such  fear  need  exist,  for,  by  the  au- 
thority vested  with  the  city  by  legislative  enactment,  so  far  as  price  is 
concerned,  the  Cincinnati  Gas  Light  and  Coke  Company  is  as  abso- 
lutely under  the  control  of  the  city  authorities  as  is  her  own  water-works. 
I  have  no  doubt  that  within  tvventy-four  hours  a  company  could  be 
formed  that  would  undertake  to  compete  with  the  city  by  furnishing 
water  at  a  lower  price  than  is  now  charged,  and  yet  the  idea  of  ac- 
cepting such  a  proposition  or  granting  such  a  franchise,  by  which  au- 
thority would  be  given  to  open  every  street  in  the  city  to  lay  dupli- 
cate mains,  would  not  be  entertained  for  a  single  moment. 

The  argument  would  be  that  the  citizens  would  get  cheaper  water. 
The  answer  would  be  that  property  already  paid  for  by  our*  citizens 
would  be  damaged  or  destroyed.  The  argument  and  answer  are  alike 
applicable  in  both  eases. 

PRACTICAL  RESULTS  OF  COMPETITION. 

New  York  City,  from  time  to  time,  permitted  the  organization  of 
competing  companies. 

The  first  one  of  this .  character  being  the  4 '  Mutual,"  built  by  the 
Kennedy  and  Hoy  Combination,  in  reference  to  whose  operations  I 
shall  quote  from  Mr.  Band's  report  to  the  Senate  Committee  : 


70 


"At  the  time  Mr.  Kennedy's  testimony  was  taken,  he  was  a  director  in  the 
Citizens  Gas  Light  Company,  of  Newark,  N.  J.,  which  was  then  charging 
$3.25  per  thousand,  and  in  the  Mutual  Gas  Light  Company,  of  New  York. 
As  a  builder  of  gas  -works,  anxious  for  a  job,  he  testifies  that  gas  can  he 
made  and  sold  at  $2.00  per  thousand  in  Boston  and  pay  seven  per  cent  diyi- 
dends,  while,  as  managing  director  of  the  Mutual  Gas  Light  Company, 
of  New  York,  he  stated  that  they  charged  $2.75  per  thousand,  had  only  laid 
pipes  in  the  thickly  settled  portions  of  the  city,  and  had  not  paid  any  divi- 
dends. At  flie  same  time,  the  Citizens  Company  of  Newark,  even  at  $3.2:;, 
were  making  no  dividends.  A  judicial  examination  of  w  hich  company  de- 
veloped the  fact  (so  testified  to  by  the  secretary  of  the  company)  that  up  to 
May  1,  1871,  that  in  the  face  of  a  loss  of  $11,740.95,  they  declared  a  dividend 
of  $51,225,  thus  creating  a  permanent  interest  bearing  debt  to  the  great  in- 
jury of  the  company,  and  to  enable  favored  parties  to  sell  their  stock  at  an 
increased  value,  under  the  pretense  that  the  dividend  had  been  earned,  while 
at  the  time  the  company  was  losing  money.  The  building  of  what  arc  called 
opposition  gas  works  is  a  trade  that  has  been  profitably  followed  by  Mr. 
Kennedy  and  others  for  some  years  past.  Their  method  is  to  go  to  a  city 
and  cry  monopoly,  organize  a  company,  sell  stock,  as  Mr.  K.  testifies,  'at  fifty 
per  cent  of  its  face  yalue,  issue  bonds,  lay  pipes  in  the  central  part  of  the 
town,  not  going  out  to  the  vacant  lots.' 

"  Having  made  their  profit  as  contractors  in  the  building  of  the  works,  the 
interests  of  the  people  are  forgotten,  and  the  new  company  takes  care  of  itself 
by  immediately  making  some  arrangements  with,  or  charging  the  same  price, 
as  the  old  company,  and  the  public  instead  of  one  monopoly  have  really  two 
(and  sometimes  five  or  six,  as  in  New  York  and  Brooklyn),  for  they  are  bound 
together  by  common  interests,  and  must  make  their  profits  out  of  the  addi- 
tional capital  invested  by  keeping  up  the  price  of  gas  to  consumers.  The 
people  thus  becoming  the  victims  of  men  who  take  their  money  and  leave 
them  perpetually  bound  to  pay  interest  on  capital  that  was  entirely  super- 
fluous." 

In  view  of  the  promises  made  by  the  founders  of  the  "  Mutual,"  it 
may  not  now  be  uninteresting  to  here  quote  an  article  w  hich  appeared 
in  the  New  York  Tribune  : 

"The  k  Mutual '  seems  to  have  come  into  amicable  relations  with  the  mem- 
bers of  the  old  monopoly  it  was  created  to  destroy,  for  the  bids  this  year 
have  gone  nearly  up  to  the  old  figures  of  four  years  ago,  and  each  company 
has  bid  for  not  all  the  lamps  in  the  streets  in  which  its  mains  are  laid,  but 
only  for  those  which  it  now  lights.  A  reporter  called  upon  the  president,  but 
he  declined  to  say  any  thing  about  the  reasons  for  increasing  the  charges  for 
next  year,  except  that  they  had  lighted  the  streets  for  nothing  this  year,  and 
intended  to  be  paid  for  it  next  year.  Questions  as  to  the  amount  of  dividends 
paid  and  the  market  value  of  their  stock  met  with  no  response." 


One  so-called  competing  company  after  another  was  permitted  to 


71 


enter,  followed  by  the  usual  flurry  of  short-lived  competition,  until 
that  city  was  supplied  by  eight  companies,  and  gas  was,  during  com- 
petitive war,  sold  as  low  as  50  cents.  Soon,  however,  an  understand- 
ing was  had ;  all  became  districted  under  a  binding  obligation  not  to 
enter  into  competition,  and  the  price  of  gas  was  raised  to  $2.25,  or 
but  25  cents  per  thousand  less  than  was  charged  twenty  years  before. 

Thus  matters  remained  until  1884,  when,  hoping  to  reduce  ex- 
penses, a  consolidation  of  six  of  the  leading  companies  was  effected, 
and  the  price  'of  gas  was  reduced  to  $1.75..  This  consolidation, 
though  made  in  the  interest  of  the  public,  was  not  so  understood; 
other  competing  companies  were  granted  franchises,  and  confusion 
again  became  worse  confounded,  when  the  Legislature  stepped  in  and 
passed  an  act  reducing  the  price  of  gas  to  $1.25,  causing  a  shrinkage 
in  the  value  of  New  York  gas  stocks  of  over  twenty  million  dollars, 
and  a  corresponding  loss  of  profits. 

The  New  York  Sanitary  Engineer  contains  the  following  suggestive 
paragraph : 

"  The  present  high  price  for  gas  in  this  city  is  very  properly  claimed  to  be 
due  to  the  fact  that  there  is  too  much  capital  invested  in  the  business.  His- 
torv  is  repeating  itself;  yet  we  presume  our  press  and  people  will  welcome 
another  gas  company — another  gas  war — and  then  howl  at  another  consolida- 
tion and  the  subsequent  advance  in  the  price." 

Thus  have  the  city  authorities  themselves,  through  their  own  incon- 
siderate actions,  not  only  uselessly  and  wantonly  impaired  the  value 
of  their  own  citizens'  investments  ;  but  have,  at  the  same  time,  im- 
posed upon  consumers  a  burdensome  capitalization  of  nearly  sixty 
millions  of  dollars,  to  earn  a  dividend  on  which  will  for  years  bar 
the  road  to  a  cheaper  and  more  acceptable  service. 

General  John  Newton,  Commissioner  of  Public  Works  of  New 
York  City,  says,  in  an  interview  published  in  the  Times,  January  30, 
1887  : 

"  There  is  no  reason  why  New  York  should  not  be  supplied  with  gas  at 
from  75  to  90  cents  per  1,000  cubic  feet,  except  that  there  has  been  from  three 
to  four  times  the  necessarv  capital  invested  in  mains  and  supplv  pipes,  be- 
cause of  the  false  notion  that  competition  would  produce  lower  prices.  In 
many  of  the  streets  there  are  four  sets  of  mains  belonging  to  as  many  several 
gas  companies.  The  competition  that  was  expected  to  ensue  from  making 
four  companies  competitors  for  the  patronage  of  the  consumers  in  the  district 
in  question  never  came  to  pass.  It  was  unreasonable  to  suppose  that  it  would. 
The  division  of  the  patronage  among  four  companies  naturallv  increases  the 


7l> 


cost  of"  the  production  and  distribution  of  the  gas,  a  cost  which  the  consumers- 
must  ultimately  pay.  • 

"A  single  company,  with  a  single  plant  and  set  of  mains  and  supply  pipes, 
could  supply  all  the  consumers  of  a  specified  district,  saying  the  expense  of 
establishing  and  maintaining  three  of  the  four  gas  w  orks,  three  sets  of  mains,, 
and  the  continuous  expense  of  administration  of  the  three  unnecessary  com- 
panies. In  order  to  get  lower  prices,  the  consumers  had  eyentuallv  to  look  to 
the  Legislature.  Now,  all  of  the  companies  on  Manhattan  Island  are  supply- 
ing consumers  at  $1.25,  and  those  in  the  annexed  district  at  $1.60  per  1,000 
cubic  feet,  the  prices  haying  been  fixed  by  law.  I  believe  the  city  should  be 
apportioned  in  districts  and  each  gas  company  be  given  a  district  to  supply 
exclusive  of  all  other  companies;  that  then  the  price  to  be  charged  should  be 
limited  by  law  to  a  fair  maximum  price  sufficient  to  return  the  company  a  fair 
income  upon  the  investment. 

"  But  the  gas  works  are  already  established  and  the  gas  mains  laid;  how 
could  the  difficulty  presented  by  these  tacts  be  overcome? 

"There's  an  unfortunate  difficulty  in  that,  to  be  sure,  but  it  constitutes  no- 
reason  why  the  evil  should  be  extended  and  perpetuated.  Interest  upon  the 
investments  in  unnecessary  mains  continue  to  be  paid  bv  gas  consumers,  and 
a  simple  computation  will  tell  any  one  how  many  years  of  such  payment 
would  be  necessary  until  the  original  cost  of  the  mains — all  dead  capital — 
would  be  recovered.  But  the  mains  continue  to  be  laid  and  continue  to  be 
duplicated  and  triplicated  and  quadruplicated.  In  some  of  our  wide  streets, 
like  Fifth  avenue,  there  are  eight  lines  of  gas  mains,  and  one  would  accom- 
plish the  purpose  of  all.  Seven  ot"  them  are  altogether  unnecessary,  and 
upon  the  money  invested  in  them  the  gas  consumers  are  compelled  to  pav 
the  interest  in  perpetuity.  Furthermore,  the  unnecessary  multiplication  of 
these  mains  compels  the  opening  of  the  pavements  many  times  more  than 
would  otherwise  be  necessary  to  lav  the  mains,  make  connections  and  re- 
pairs, and  stop  leaks.  All  this  costs  the  city  large  money,  for  although  the 
streets  are  opened  and  closed  and  the  pavements  relaid  at  the  nominal  ex- 
pense of  the  gas  company,  a  large  force  of  inspectors  must  be  maintained 
by  the  city  to  see  that  the  work  is  done  properly.  And  the  pavements  are 
never  the  same  after  once  they  are  broken  through,  and  in  the  destruction  01 
pavements  the  city  suffers  the  most." 

Brooklyn  is  another  city  which  has  enjoyed  to  the  fullest  extent  the 
privileges  of  competition.  For  a  very  brief  period  in  the  contest  be- 
tween the  Brooklyn  and  Citizens  gas  companies,  gas  was  sold  as  low 
as  12)4  cents,  soon  bringing  the  new  company  to  terms,  and  forcing 
them  to  pay  to  the  older  and  stronger  company  a  handsome  sum  for 
the  privilege  of  a  district. 

This  operation  was  repeated  over  and  over  again,  until  they  now 
have  six  companies — all  districted — charging  a  uniform  price  of  Si. 60. 

The  Committee  of  the  Board  of  Aldermen  intrusted  with  the  con- 


73 


sideration  of  the  question  of  admitting  still  another,  made  quite  a 
lengthy  adverse  report,  from  which  1  make  the  following  extract: 

"  Instead  cf  competing,  the  new  companies  have  at  once  coalesced  with  the 
existing  monopolists,  and  with  appetites  fresh  and  unsatiated,  they,  for  the 
most  part,  have  even  exc  eeded  in  rapacity  the  older  cormorants.  They  have 
neither  improved  the  quality  of  the  gas,  nor  manifested  a  disposition  to  reduce 
the  cost  to  the  consumer;  and  to-day  the  result  is  that  instead  of  two  grasp- 
ing eorpoi-ations,  preying  upon  the  people,  there  are  six." 

Mayor  Howells,  in  recently  vetoing  a  resolution  of  the  Board  of 
Aldermen,  to  light  the  streets  with  oil,  because  of  the  exorbitant 
charges  of  the  gas  companies,  said : 

"  There  is  apparently  more  capital  invested  in  the  gas  business  here  in 
Brooklyn  than  is  needed  to  conduct  it.  There  are  more  companies  here 
than  are  compatible  with  a  close  and  economical  conducting  of  the  business. 
Brooklyn  does  not  get  any  return  in  taxes  that  begins  to  offset  the  loss  to  our 
citizens  who  are  gas  consumers.  Our  city  does  not  need  more  gas  companies, 
it  requires  fewer." 

The  Brooklyn  Eagle,  commenting  upon  the  same  subject,  says : 

"  Paradoxical  as  the  statement  may  appear,  Brooklyn  is  suffering  because 
there  are  too  many  gas  companies.  They  owe  their  existence  to  what  was 
♦ermed  the  spirit  of  competition.  They  simply  proved  efficient  in  getting  far 
more  capital  sunk  in  the  works  and  mains  than  the  demand  for  gas  could  pos- 
sibly justify." 

Chicago  is  another  illustration  of  the  fallacy  of  competition.  Until 
;882  the  consumers  of  that  city  were  being  supplied  by  two  compa- 
nies with  a  capitalization  of  $8,000,000,  and  a  natural  division  main- 
tained by  the  river. 

In  that  year  the  ''Consumer's  Fuel-Gas  and  Light  Company"  was 
organized  by  the  same  parties  who  had  so  successfully  raided  Balti- 
more, New  York,  Brooklyn,  and  other  cities.  The  most  populous 
and  paying  portion  of  the  city  was  piped,  and  they  commenced  sell- 
ing gas  at  the  usual  raiding  price  of  $1.00;  but,  being  met  by  the 
old  company  with  equal  rates,  the  new  concern,  in  order  to  defraud 
and  divest  the  local  subscribers  to  their  stock,  was  placed  in  the  hands 
of  a  receiver,  and  the  works,  which  had  cost  $3,000,000,  were  sold 
for  less  than  two — but  the  purchasers  were  the  same  old  gangsters. 


74 


In  relation  to  this  sale,  the  American  Journal  ot  August  2,  1886, 

says : 

"  In  pursuance  of  a  decree  made  by  the  United  States  Circuit  Court,  Mr. 
E.  B.  Sherman  sold  the  entire  plant,  etc.,  of  the  Consumers  Fuel-gas  and 
Light  Co.  to  John  F.  Lester,  who,  it  is  presumed,  acted  on  behalf  of  the  Cum- 
mings,  Kent  and  Ryburn  syndicate.  The  consideration  received  was 
$1,946,000. 

"  It  looks  as  though  some  of  the  'ground-floor'  stockholders  are  to  be  im- 
mured in  the  'cellar;'  and  thus  does  the  innocent  share-holder  become  con- 
vinced that  'things  are  not  always  what  they  seem.'" 

The  troublesome  and  minority  stockholders  having  thus  been 
squeezed  out  of  a  cool  million,  the  insiders  at  once  reorganized  on  a 
capital  basis  of  five  millions— as  portrayed  by  the  Journal's  editorial 
of  December  16,  1886: 

"  Doing  business  once  more.  The  Consumers  Fuel-gas  and  Light  Co.  has 
been  legally  re-habilitated,  and  is  again  doing  business  at  the  old  stand  and 
under  the  old  name,  and  it  is  to  be  presumed  that  it  will  be  under  the  '  old 
process,'  for  we  have  just  received  an  account  of  two  fatal  cases  of  suffocation 
<lue  to  inhaling  the  poisonous  gas.  Mr.  C.  E.  Judson,  who  acted  as  receiver 
when  the  concern  went  into  bankruptcy,  has  been  named  president  of  the  re- 
vivified enterprise,  and  no  material  change  of  management  will  be  made." 

This  venture  not  appearing  as  productive  as  desired,  the  Equitable 
Gas  Company  was  organized,  and  the  history  of  the  preliminaries  be- 
ing so  similar  to  portions  of 

THE   HISTORY   OF   THE   DEAL  NOW   UNDER  CONSIDERATION, 

I  must,  at  the  expense  of  a  few  minutes'  time,  give  some  of  its  most 
interesting  features,  as  set  forth  in  the  Chicago  Tribune  of  August  14, 
1885: 

"THE  CHICAGO  ENTERPRISE. 

"About  six  months  ago  one  of  the  Aldermen  suggested  to  Mr.  McGurren 
"that  times  were  very  dull,  and  that  something  should  be  done  to  make  life 
more  enjoyable  to  the  members  of  the  Council.  McGurren  replied  that  the 
Alderman  might  stir  around  and  see  if  it  was  not  about  time  to  get  up  an  op- 
position to  the  West  Side  Gas  Co.  The  Alderman  took  the  hint,  quietly  in- 
vestigated matters,  and  found  that  the  Consumers  Company  was  not  in  shape 
to  do  much  business  on  the  West  side,  and  that  that  portion  of  the  city  af- 
forded a  good  opening  for  a  gas  company.  He  fortified  himself  with  statistics 
and  arguments,  and  went  to  New  York  in  company  with  McGurren.  The 
latter's  financial  friends  listened  to  the  Alderman's  statements  about  the 


75 


chances,  and  finally  said  they  would  not  object  to  invest  in  a  now  company  in 
Chicago,  provided  a  franchise  could  be  had  on  reasonable  terms.  The  Alder- 
man returned  to  Chicago  and  then  began  his  missionary  work,  among  his  col- 
leagues. 

"  He  laid  his  scheme  before  his  friends,  and  the  '  Big  Four'  (in  reality  there 
are  but  three'  now)  at  once  approved  of  it.  McGurren,  who  was  then  looking 
for  the  United  States  Marshalship,  went  East,  where  he  met  several  of  the 
Aldermen  who  were  anxious  to  make  the  deal,  and  the  preliminaries  were  set- 
tled. It  was  not,  however,  until  after  the  spring  election  that  it  was  deemed 
wise  to  come  before  the  Council  with  the  scheme,  as  the  '  Big  Four  '  was  anx- 
ious to  retain  the  control  of  the  job,  and  feared  political  interference  during 
the  election. 

"  The  first  or  second  Monday  after  election  a  North  Side  Alderman  intro- 
duced an  ordinance  giv.ing  a  franchise  to  the  Equitable  Gas  Light  and  Fuel 
Company.  He  would  not  tell  who  were  behind  the  company,  and  refused 
even  to  say  at  whose  request  he  introduced  the  ordinance.  The  latter  was  re- 
ferred to  the  Committee  on  Gas,  which  consisted  of  Messrs.  Colvin,  Ryan, 
Purcell,  Whelan,  and  Simons.  The  'Gaynor'  set  had  the  majority  in  this 
Committee,  and  they  absolutely  refused  to  do  any  thing  for  the  ordinance  un- 
less they  were  let  into  the  scheme.  This  was  finally  agreed  to,  and  it  was  de- 
cided not  to  grant  the  franchise  directly  to  a  corporation  which  might  after  all 
not  deal  fairly  by  the  boys,  but  to  some  friends  of  the  Aldermen  who  could 
act  as  middlemen.  'Gaynor's'  crowd,  consequently,  named  two  of  the  syn- 
dicate—  Messrs.  Everhart  and  Clare — while  the  third  man,  John  Lomax,  was 
selected  by  the  'Big  Four'  combination.  Before  this  was  accomplished,  how- 
ever, one  of  the  leaders  of  the  'Gaynor'  set  was  taken  to  New  York  bv 
McGurren,  and  brought  under  the  influence  of  the  New  York  syndicate. 
The  ordinance  was  duly  reported  back  to  the  Council  without  any  fuss;  it 
was  deferred,  and  came  up  again  as  unfinished  business  before  the  canvass 
of  the  vote  was  finished.  In  the  regular  order  it  would  not  have  been  reached 
for  weeks;  but  its  passage  was  desired  by  the  Aldermen,  who  controlled  the 
then  City  Clerk,  and  it  came  up  when  all  was  in  readiness.  When  it  was 
presented,  it  was  moved  to  amend  the  ordinance  bv  striking  out  the  name 
Equitable  Gas  Light  Company,  and  inserting  instead  the  names  of  Everhart, 
Lomax,  .and  Clare;  and,  after  this  amendment  was  agreed  to,  the  ordinance 
passed  with  only  six  votes  recorded  against  it — those  of  Messrs.  Shorev, 
Wetherell,  Bond,  Manierre,  Follansbee,  and  Clarke.  At  the  next  meeting  a 
reconsideration  of  the  ordinance  was  moved,  and  it  was  amended  by  strik- 
ing out  the  clause  copied  from  the  ordinance  of  the  Consumers  Company, 
which  prohibited  the  transfer  of  the  franchise  to  any  other  person  or  corpo- 
ration, and  it  again  passed  by  the  same  vote.  The  Mayor  permitted  the  or- 
dinance to  become  a  law  without  his  signature,  and  the  thing  seemed  com- 
plete. There  were  then  several  trips  to  New  York  by  Aldermanic  leaders, 
and  some  Chicago  bankers  received  letters  of  inquiry  from  New  York 
friends  about  the  value  of  the  new  gas  franchise. 

"All  at  once  it  turned  out  that  the  new  ordinance  was  waste  paper,  as  it 
was  not  drawn  up  in  legal  form,  the  enacting  clause  having  been  omitted. 
This  technical  but- fatal  defect  had  been  made  known  to  A.  M.  Billings,  of 


76 


the  West  Side  Company,  who  complacently  let  the  Aldermen  have  the 
trouble  of  passing  the  ordinance  without  lifting  a  finger  to  oppose  it.  He 
took  good  care,  however,  to  have  the  fact  that  the  ordinance  was  no  ordi- 
nance at  all  become  well  known  in  New  York,  and  Mr.  McGurren  and  his 
friends  were  about  to  conclude  that  they  had  worked  in  vain,  when  it  oc- 
curred to  one  of  the  leaders  that  it  would  be  an  easy  thing  to  secure  the 
passage  of  a  perfected  ordinance.  The  New  York  men  were  told  it  could 
be  done;  were  even  furnished  a  list  of  the  Aldermen  who  would  vote  for  it; 
and  a  contract  was  then  and  there  entered  into,  that  they  would  pay  $85,000 
for  'a  controlling  interest1  in  the  franchise,  within  twenty-four  hours  after 
it  had  acquired  legal  force;  provided  the  franchise  was  not  tinkered.  The 
'Big  Four1  and  the  other  combination  went  to  work,  and  all  went  merry  as 
a  wedding  bell.  An  order  was  introduced  to  rescind  the  first  franchi.se,  and 
at  the  same  time  there  was  introduced  a  new  one,  this  time  in  favor  of  the 
Equitable  Gas  Light  Company  of  Chicago,  under  which  name  Everhart, 
Lorn  ax,  and  Clare  had  taken  steps  to  become  incorporated." 

Then  again  ensued  renewed  hostilities,  followed  by  the  usual  con- 
solidation, by  which  all  were  brought  tinder  the  parental  care  of  a 
trust  on  a  capital  basis  of  $39, 250,000,  an  increase  of  stock  and  bonds 
of  owr  twenty-two  million  dollars.  Followed  by  an  increase  in  the  price 
of  gas  to  Si. 25  per  thousand.  The  municipal  authorities  have,  in 
every  way  in  their  power,  been  trying  to  relieve  the  city  of  the  incu- 
bus thus  placed  upon  it,  but  there  is  apparently  no  escape  from  this 
self-imposed  thraldom. 

The  bill  to  forfeit  the  franchises  of  these  companies,  filed  but  a 
few  days  ago,  recites  : 

"The  acceptance  by  the  different  companies' of  their  respective  charters, 
was  upon  the  implied  conditions  that  these  companies  would,  in  due  time 
and  in  good  faith,  carry  on  their  business  in  such  a  way  as  to  secure  to  the 
people  the  advantages  of  competition.  As  a  matter  of  fact,  the  companies 
did  enter  upon  and  pursued  this  plan  up  to  the  time  when  was  formed  the 
conspiracy  to  put  an  end  to  such  competition  by  combination. 

"  The  people  of  this  city  are,  in  consequence,  compelled  to  pay  an  unreason- 
able price  for  gas.  Not  only  is  the  price  exorbitant,  but  the  quality  is  inferior; 
so  the  people  are  at  the  mercy  of  this  monopoly,  which  fixes  the  price  and 
quality  of  the  gas  as  best  suits  its  supreme  will." 

The  Chicago  Tribune,  in  an  editorial  upon  this  subject,  says: 

'•The  Philadelphia  'promoters'  began  operations  a  couple  of  years  ago; 
they  then  found  in  this  city  three  gas  companies.  One  of  the  three  was  very 
profitable,  another  paid  well,  and  the  third  had  gone  into  bankruptcy.  The 
capital  stock  of  these  companies  did  not  exceed  $14,000,000,  although  consid- 
erably watered,  and  their  bonded  debt  was  less  than  $10,000,000. 


77 


"Their  first  step  was  to  gel  control  of  all  these  properties,  and  issued  stock  to 
the  extent  of  $25,000,000,  which  they  have  been  peddling  out  to  all  w  ho  w  ill 
buy  it,  with  the  promise  that  it  will  pay  dividends. 

"They  also  placed  upon  it  a  honded  indebtedness  of  $15,000,000,  which  the 
people  are  expected  to  pay,  principal  and  interest. 

"This  is  paving  a  high  price  tor  the  services  of  the  sharpers  who  run  the  gas 
trust." 

The  Chicago  Journal,  of  March  1 6th,  says: 

"There  were  several  gas  companies  in  this  city  furnishing  a  fair  quality  of 
gas  at  such  prices  as  the}'  could  afford  in  the  various  parts  of  the  city. 

"  The  gas  trust  was  formed  with  a  capital  of  25  millions,  w  hich  the  mem- 
bers of  the  syndicate  issued  to  themselves  without  the  payment  of  a  dollar 
into  the  treasury,  if  it  had  one.  They  then  bought  up  a  controlling  interest 
in  the  different  gas  companies,  but  paid  no  money  of  their  own  on  the  pur- 
chase, but  placed  a  mortgage  of  ten  million  dollars  on  the  strength  of  those 
companies,  and  used  the  proceeds  to  pay  for  the  stock  bought. 

"By  these  methods  they  obtained  control  of  these  companies  without  ex- 
pense to  themselves.  They  then  advanced  the  price  of  gas  all  around  25 
•cents  a  thousand,  for  the  purpose  of  increasing  the  revenues  of  the  companies 
so  they  could  pay  interest  on  the  watered  stock  and  bonds.  This  tribute  is 
paid  by  the  people  for  the  support  of  the  octopus." 

The  New  York  Times,  in  editorially  commenting  upon  the  same 
transaction,  says  : 

"The  history  of  this  Chicago  gas  deal  shows  so  clearly  the  ease  w  itn  which 
this  form  of  grand  larceny  is  carried  on.  and  furnishes  such  a  striking  illustra- 
tion of  its  monstrous  evils,  that  it  ought  to  he  studied  and  pondered.  The 
Chicago  deal  is  only  one  out  of  many  of  its  kind  that  have  lately  sprung  up. 
They  are  every  one  of  them  conspiracies — monstrous,  soulless,  and  voracious 
— against  the  rights  of  the  citizens  and  the  welfare  of  the  community;. 

Baltimore  has  likewise  sinned  and  suffered. 

For  a  period  of  over  fifty  years,  and  until  1870.  that  city  was  ac- 
ceptably served  by  one  company.  Its  prosperity  attracted  the  pro- 
fessional raiders,  and  under  the  popular  cry  of  •'cheaper  gas  and 
anti-monopoly,"  the  "  Peoples  Gas  Company"  was  permitted  to  enter 
the  field.  It  piped  only  the  densely  settled  and  paying  portion  of  the 
city,  and  thus  forced  a  districting  arrangement.  Two  monopolies  in 
place  of  one,  and  no  reduction  in  price  of  gas  to  the  consumer. 

The  precedent  being  set,  another  set  of  philanthropists  came  from 
the  City  of  Brotherly  Love  with  a  "patented  water-gas  process,"  as 
saviors  of  the  down-trodden,  and  the  " Consumers  (las  Company" 


78 


commenced  the  ripping  process.  The  usual  course  followed  :  a  short 
lived  rate  war  and  consolidation  on  a  capital  basis  of  $9,600,000,  with 
three  sets  of  works  and  three  sets  of  mains  and  no  resultant  reduc- 
tion in  the  price  of  gas. 

Soon  the  same  enterprising  "  raiders"  again  appeared  with  the 
"  Equitable  Gas  Company,"  of  which  the  Baltimore  News  said: 

"  It'  the  people  of  Baltimore  are  vietimized  by  a  pretended  competition  in 
the  supply  of  gas,  they  can  not  complain  that  the}'  have  not  been  warned. 
When  it  was  first  given  out  that  the  Equitable  Company  was  about  to  build 
works  here  and  give  us  better  and  cheaper  gas,  like  a  majority  of  our  people, 
we  were  ready  to  welcome  it. 

"But  we  remembered  that  twice  before  had  Baltimore  welcomed  such  com- 
petition, only  to  pay  up  afterward  out  of  their  own  pockets  the  money  gob- 
bled by  the  unscrupulous  speculators  who  had  deceived  us. 

"And  when  report  informed  us  that  the  same  New  York  'philanthropists' 
who  built  the  Peoples  Company  here  fourteen  years  ago  were  the  gentlemen 
who  were  engineering  the  Equitable,  we  felt  it  our  duty  to  warn  the  consum- 
ers of  gas  in  this  city  to  be  on  their  guard  and  not  trust  anonymous  assur- 
ances made  only  to  be  broken. 

"  The  lowering  of  rates  below  the  paying  point  is  a  cut-throat  business  which 
can  not  be  of  any  substantial  good  to  the  people,  since  they  must  make  up  for 
the  successful  company's  losses  when  the  weaker  has  gone  to  the  wall.  We 
may  say  what  wre  will,  but  neither  natives  of  Baltimore  nor  the  strangers  who 
come  within  her  gates  are  likely  to  run  their  business  for  the  public  benefit 
alone.  All  such  pretenses  are  bosh.  Neither  the  old  nor  the  new  companies 
will  furnish  gas  at  a  loss  from  local  sentiment  or  private  philanthropy.  They 
are  going  to  make  monejr,  and,  if  unselfish  and  generous  competition  comes 
all  the  way  from  New  York  to  manufacture  gas,  it  will  verily  seek  its  reward 
in  Baltimore  dollars,  just  as  covetously  and  avariciously  as  the  oldest  of  old 
monopolies.  And,  when  it  gets  the  'old  monopoly'  out  of  the  way,  it  will 
squeeze  the  profits  out  of  the  people  to  make  up  the  losses  of  competition  just 
as  inexorably  as  the  old  company  will  if  it  drives  or  buys  its  competitor  off. 
In  either  event,  the  dear  people  will  briefly  dance  to  the  tune  of  low  prices 
while  the  fun  goes  on,  and  will  then  wince  at  the  high  price  charged  by  the 
fiddler  when  the  frolic  and  revel  is  over. 

"  The  existing  company  is  managed  by  some  of  our  best  known  business 
men  and  most  esteemed  citizens.  The  Equitable,  by  men  who  are  renowned 
for  a  series  of  what  are  termed  gas-wrecking  schemes  in  other  cities.  They 
are  the  same  parties  who  started  an  opposition  company  in  New  York  City, 
ran  the  price  of  gas  down  to  $1.00,  pooled  earnings,  and  raised  the  price  to 
$2.25. 

"  They  are  the  same  parties  who  obtained  a  charter  for  New  Orleans,  and 
captured  one  million  dollars  without  laving  a  pipe. 

"  St.  Louis,  Detroit,  and  other  cities  have  been  visited  by  these  philanthro- 
pists, anxious  to  confer  upon  the  people  the  benefit  of  better  and  cheaper  gasr 


79 


invariably  with  the  same  results— reduced  price  at  first,  and  higher  prie-rs 
in  the  end." 

Failing-  to  secure  the  assent  of  the  municipal  authorities  to  their 
scheme,  they  set  quietly  at  work  and  secured  the  passage  of  a  legisla- 
tive act,  waich  empowered  them  to  enter  upon  the  streets  without 
municipal  consent.  Againthe  "ripping  process"  was  followed  by  a 
protracted  rate  war,  during  which  gas  was  sold  at  $1.00,  compromise, 
consolidation,  and  increase  of  price. 

The  Press  dispatches  of  October  8,  1884,  saying : 

"  The  contesting  companies  have  agreed  to  bury  the  hatchet,  and  give  the 
consumers  a  chance  to  pay  an  increased  price  for  gas.  They  deserve  no  pity; 
indeed,  upon  the  whole,  they  are  lucky  to  get  off  so  easy,  for  there  was  noth- 
ing to  prevent  the  truce  figures  from  being  placed  at  $2.00  instead  of  $1.60." 

But  this  was  not  to  be  the  end;  again  identically  the  same  vultures, 
only  one  year  later,  returned  to  their  victims — constantly  growing 
weaker  with  each  attack — and  the  result  was  the  introduction  of  the 
Chesapeake  Gas  Company,  a  war  of  rates,  and  another  consolidation, 
by  which  a  capitalization  of  $17,400,000  was  placed  as  a  burden  upon 
the  city  and  its  gas  consuming  citizens — causing  a  shrinkage  of  over 
three  million  dollars  in  their  own  citizens'  investments,  and  rendering 
it  utterly  impossible  for  the  gas  company  to  earn  a  dividend  below  the 
price  previously  charged. 

St.  Louis  was  reasonably  well  served  by  one  company,  until  1870, 
when  there  arose  an  unfortunate  misunderstanding,  and  subsequent 
litigation,  in  regard  to  the  reserved  right  to  purchase,  and  refusal  upon 
the  part  of  the  city  to  pay  for  gas  used.  The  old  company  offered  to 
compromise,  and,  in  addition,  to  give  the  city  certain  percentages, 
amounting  to  about  $50,000  per  year,  which  proposition  was  indig- 
nantly rejected.  As  a  supposed  remedy  for  existing  evils,  competition 
was  invited,  the  Laclede  Company  was  granted  a  franchise,  and  its 
advent  hailed  with  exceeding  great  joy :  but  the  contest  lasted  less 
than  a  year,  prices  were  advanced  to  S3. 25,  and  the  old  company  ob- 
tained judgment  against  the  city  for  over  one  million  dollars.  They 
then  sold  to  the  new  company  the  territory  north  of  Washington  ave- 
nue, for  $700,000,  sending  the  market  value  of  the  old  company's 
stock  up  to  near  400,  while  that  of  the  new  company  remained  at 
about  par. 

The  price  of  gas  was  reduced,  and  every  thing  was.  for  a  while, 
satisfactory.    But  soon  another  company — the  Carondelet  Gas  Co. — 


80 


was  granted  a  franchise;  soon  followed  by  another — the  St.  Louis 
Light,  Heat  and  Power  Co. — which  obtained  its  franchise  through  the 
fraudulent  representation  that  it  intended  to  furnish  "  fuel  gas"  only 
at  a  remarkably  low  figure  ;  but,  as  soon  as  its  pipes  were  down, 
lo  and  behold,  it  bloomed  forth  into  a  full  fledged  "  illuminating  gas" 
company,  with  the  usual  "raiding  price  "  of  $1.00  per  thousand. 
Of  this  company  the  Star  said  : 

''Through  false  pretenses  it  secured  a  foot-hold  in  a  very  limited  territory; 
its  output  was  never  more  than  one -seventh  of  the  total  gas  sold,  and  yetf  with 
so  small  an  income,  the  company  lias  dissipated  or  rendered  practically  value- 
less nearly  half  a  million  dollars.  This  is  about  as  strong  an  argument  show- 
ing the  destructiveness  of  competition,  in  the  sense  of  w  hat  is  hest  for  the  in- 
terests of  a  community,  that  can  he  advanced/1 

The  author  then  continues  to  deprecate  further  competition  in  the 
gas  supply  of  that  city,  and  in  the  course  of  his  article  pays  the  fol- 
lowing 

"TRIBUTE  TO  CINCINNATI. 

"A  clear  case  in  point  is  our  own  city  of  St.  Louis;  off  and  on.  four  com- 
panies have  operated  here,  yet  prices  have  averaged  from  150  to  200  per 
cent  higher  than  those  which  Cincinnati,  w  ith  only  one  gas  company,  has  had 

to  pay. 

"  No  extraneous  causes  have  produced  this  favorable  condition  of  affairs  in 
Cincinnati;  her  advantage  is  to  be  found  in  the  financial  features  of  the  man- 
agement of  her  gas  plant,  its  centralized  control,  in  a  word  in  its  economies. 

"The  definite,  tangible  result  has  been  cheap  gas;  and  that,  we  take  it,  as 
far  as  St.  Louis  is  concerned,  '  is  what  w  e're  here  for.'  " 

A  few  years  later,  the  Light,  Heat  and  Power  Co.  was  consolidated 
with  the  old  St.  Louis  Co.,  and  a  war  was  declared  against  the  La- 
clede, and  again  prices  in  the  competing  district  fell  to  $1.00  per 
thousand.  The  final  result  of  this  contest  was  that  the  Laclede  bought 
out  its  rival  and  a  new  syndicate  was  formed  on  a  capital  and  bond 
basis  of  $19,034,400,  or  an  increase  of  about  twelve  and  a  half  million 
dollars,  upon  which  consumers  will  have  to  pay  interest,  and  thus  in- 
evitably prevent  that  reduction  in  price  which  would  have  followed 
increased  service  on  a  reasonable  capitalization. 

Louisville  w  as,  some  years  since,  visited  by  a  party  of  eastern  phil- 
anthropists, anxious  to  confer  upon  the  citizens  of  that  city  the  bene- 
fits of  a  better  and  cheaper  gas. 

A  most  exhaustive  examination  of  the  subject  was  made,  extend- 


81 


ing  over  a  period  of  six  months,  resulting  in  the  submission  of  the 
following  report : 

"  Respecting  tlie  admission  of  the  Citizens  (i;is  Light  Company — to  com- 
pete-vyith  the  Louisville  Gas  Company — the  Committee  have  examined  and 
carefully  considered  all  the  information  to  be  obtained  from  cities  where  Bucfc 
competition  exists,  and  are  unable  to  find  one  single  instance  where  competi- 
tion has  resulted  beneficially  to  the  consumers  of  gas. 

"  The  weight  of  evidence  invariably  showing  an  inc  rease  rather  than  the 
mitigation  of  the  evil. 

"The  experience  of  all  cities  where  competition  baa  been  allowed,  has  been 
that  the  weaker  company  has  eventually  fallen  a  prey  to  the  stronger,  and  tbe 
result  of  the  consolidation  of  the  two  has  always  been  an  increased  and  more 


oppressive  charge  for  light.    .    .  . 

"The  Committee,  therefore,  notwithstanding  the  unsatisfactory  relations  of 
the  City  with  the  Louisville  Gas  Co.,  under  the  charter  of  said  company,  are 
clearly  of  the  opinion  that  competition  should  not  be  allowed." 


Notwithstanding  this  adverse  report,  the  Common  Council  passed 
the  ordinance,  but  met  the  Mayor's  veto — in  presenting  which,  he 
used  the  following  language  : 

"  Nor  do  I  believe  that  cheaper  gas,  a  consummation  to  be  desired  by  none 
more  than  myself,  could  be  secured  by  the  plan  proposed ;  but  as  tins  \-  a  mere 
matter  of  individual  opinion,  to  be  respected  only  because  of  tbe  courteous 
manner  in  which  it  is  tendered,  I  will  not  press  it.  Tbe  history,  however, 
of  all  such  enterprises  is  that  in  a  short  time  they  are  either  amalgamated 
with  the  old,  or  there  is  a  division  of  territory.  In  either  event,  the  citizens 
have  to  'pay  for  the  whistle'  by  an  increased  price  to  make  up  for  the  losses 
incurred  by  the  opposition." 

The  wisdom  of  this  advice  was  recognized  until  1884.  when  a  syn- 
dicate of  the  Southern  Branch  of  the  Standard  Oil  Co.,  assisted  by 
some  eastern  "  raiders,"  procured  an  opposition  franchise,  built  a 
works,  and  laid  a  few  miles  of  mains,  at  a  total  expense  of  $250,000; 
■but  which  they  at  once  bonded  and  stocked  for  $1,500,000.  The  usual 
course  followed :  a  short-lived  competition,  during  which  gas  was  sold 
below  one  dollar;  differences  were  adjusted;  the  new  company,  con- 
trary to  pledges,  sold  out  to  the  old  one ;  the  price  of  gas  increased, 
and  one  million  of  dollars  added  to  the  stock  of  the  Louisville  Com- 
pany, upon  which  the  consumers  are  compelled  to  pay  dividends. 

Nashville,  Tennessee,  was  in  turn  vigorously  besieged  by  opposition 
interest,  intent  only  upon  conferring  on  her  citizens  the  inestimable 
benefits  of  a  better  and  cheaper  light. 


The  matter  was  most  thoroughly  investigated,  and  the  following  is 
an  extract  from  the  report  of  the  Committee : 

"  From  a  careful  comparison  of  the  prices  paid  for  gas  in  those  cities  where 
competitive  companies  have  been  allowed  under  the  siren  promise,  while 
seeking  a  foothold,  of  cheaper  gas  for  the  people,  we  find  the  statements  of 
the  eminent  economist  have  been  practically  verified.  In  some  instances, 
they  have  cheapened  gas  for  a  few  months  during  the  competitive  war,  but 
invariably  ends  in  consolidation  by  a  sale  of  the  one  to  the  other,  or  by  an 
agreement  to  divide  territory  and  not  compete  therein;  in  both  of  which  cases 
the  gas  consumers  have  had  an  increased  capital  upon  which  to  pay  interest, 
which  has  elevated  rather  than  lowered  the  price  of  gas.  The  great  cities  of 
Europe,  recognizing  this  theory  as  true,  allow  but  one  gas  company.  Lon- 
don has  constituted  the  only  exception  of  which  your  Committee  are  aware, 
and  for  years  the  tendency  in  London  has  been  to  get  rid  of  the  existing 
plurality  and  consolidate  into  one  gas  company  with  a  view  to  cheapen  gas. 
From  twelve  gas  companies  she  has  reduced  cmite  recently  to  three,  and  just 
in  proportion  to  the  reduction  of  gas  companies  has  the  price  of  gas  decreased. 
In  other  words,  London  is  supplied  with  cheaper  gas  by  her  three  companies 
than  she  was  by  her  twelve. 

"  In  its  investigation,  your  Committee  have  found  no  instance  where  the  ad- 
mission of  a  competitive  gas  company  has  resulted  in  the  permanent  diminu- 
tion of  the  price  of  gas. 

"We  would  cite  the  following  cities  in  the  United  States,  where  the  experi- 
ment of  admitting  competitive  companies,  in  order  to  reduce  the  price  of  gas, 
has  been  fully  tested  and  with  the  result  above  stated:  New  York  City, 
Brooklyn,  X.  Y.,  Providence.  R.  [.,  and  New  Orleans.  Our  sister  city  of 
Memphis  joined  the  last-mentioned  cities  and  a  long  list  of  others,  not  neces- 
sary here  to  enumerate,  in  an  effort  to  attain  cheap  gas  through  a  competi- 
tive gas  company.  The  result,  after  a  sharp,  short  war,  was  a  sell  out  by  the 
new  to  the  old  gas  company,  in  an  increase  in  the  capital  stock  of  the  latter, 
upon  which  the  city  government  and  consumers  of  gas  in  Memphis  are  now 
paying  interest,  in  the  shape  of  high  rates  for  gas. 

"Your  Committee  have  very  carefully  considered  the  injury  that  would 
necessarily  result  to  the  city  by  the  passage  of  the  present  bill,  tearing  up  our 
narrow  streets  and  pavements,  blasting  through  solid  rock  along  every 
thoroughfare,  alley,  and  reservation  within  the  city  to  lay  gas  pipes  and  mains, 
the  interruption  to  public  travel,  and  the  consequent  detriment  to  all  business, 
necessary  expenditures  by  the  city  in  repairing  injuries  to  streets  when  the 
process  of  laying  mains  by  the  new  corporation  shall  have  been  completed, 
and  the  settling  of  excavations  fully  set  in,  not  to  speak  of  the  possibility  of 
vexatious  litigation  for  the  alleged  violation  of  vested  rights  when  the  war  of 
the  roses  shall  have  been  fully  inaugurated. 

"The  Committee  have  sought  in  vain  for  results  that  would  offset  their  great 
expenses,  annoyance,  and  disadvantages.  They  fail  to  discover  the  benefits 
that  would  accrue  to  any  outside  of  the  contractor  and  the  parties  immedi- 
ately interested  in  the  new  gas  scheme." 


The  ordinance  was  not  only  rejected,  but  the  principle  of  exclusive 
privilege  was  re-affirmed,  and  the  citizens  made  happy  by  enjoying  the 
benefits  and  advantages  of  the  lowest  priced  gas  in  the  state. 

New  Orleans  was,  some  years  since,  raided  by  eastern  operators, 
who,  by  false  representations  and  questionable  legislation,  defeated 
the  renewal  of  the  charter  of  the  old  company,  and  secured  to  them- 
selves the  rights  and  privileges  of  the  city,  thus  utterly  destroying  the 
value  of  the  investments  of  the  old  company,  whose  directors,  after 
trying  every  other  means  in  their  power  to  save  their  trust  interests, 
consented  to  an  arrangement  whereby  the  stock  was  doubled;  the 
raiders  took  their  half ;  no  works  were  built,  and  the  price  of  gas  was 
increased  to  pay  dividends  on  the  watered  stock. 

The  following  is  an  extract  from  a  letter  some  time  since  received 
from  M.  Forestall,  the  then  able  manager  of  that  company  : 

They  have  yet  to  learn  by  sad  experience  that  competition  in  gas  must 
end  in  compromise,  and  higher  prices  inevitably  follow.  From  our  own  past 
vicissitudes,  I  judge  that  Cincinnati  human  nature  will  not  be  satisfied  until 
it  has  encouraged  and  fostered  a  competing  company,  which  you  will  have  to 
break  or  buy,  and  charge  the  loss  to  your  consumers." 

From  a  very  interesting  pamphlet  in  my  possession,  entitled  "  His- 
tory of  the  New  Orleans  Gas  Deal,"  I  beg  to  submit  a  few  extracts 
of  interest  in  the  consideration  of  such  a  subject.  First  referring  to 
the  decision  rendered  in  favor  of  the  raiders : 

"  How  this  decision  was  received  by  the  public  is  best  evidenced  by  quotim* 
from  an  editorial  which  appeared  in  the  Picayune: 

"  Judge  Dibble  decided  yesterday,  in  favor  of  plaintiff,  the  suit  of  the 
State  of  Louisiana  v.  The  N.  O.  Gas  Light  Company.  We  have  not 
before  us  his  opinion  in  the  case,  nor  do  we  know  the  grounds  upon 
which  he  based  his  judgment,  but  we  know  enough  concerning  the  facts 
to  enable  us  to  say  that  it  is  one  of  the  most  iniquitous  of  all  the  suits 
which  have  made  the  Eighth  District  Court  so  notorious  in  the  judicial 
annals  of  Louisiana. 

"  May  not  the  evidence  produced  in  the  examination,  instituted  eight  vears 
thereafter,  throw  ^on^e  light  upon  the  subject  of  his  employment,  for  the 
'  Syndicate's '  check-book  shows  that  check  No.  S  (date  not  given),  for  the 
sum  of  $1,500,  was  drawn  to  his  order?  The  cash-book  of  the  Crescent 
City  Gas  Company  shows  that  $500  was  paid  'aim  for  pro  fessional  services} 
and  the  '  Escrow  account '  shows  that  he  subsequently  received  a  retainer  of 
$1,000,  and  was  placed  under  salary  of  $83.33  Per  month. 

"  Immediately  after  this  decision  was  rendered.  General  Herron  started 
East  in  the  search  of  some  party  who  had  the  money,  nerve,  and  ability  to 
prosecute  the  undertaking  to  a  successful  conclusion. 


84 


"  He  naturally  turned,  as  these  men  have  turned,  to  persons  experienced  in 
schemes  of  this  character.  Such  an  operation  had  proven  profitable  in  Balti- 
more, and  had  been  successfully  accomplished  in  St.  Louis.  To  the  repre- 
sentative of  this  Syndicate,  H.  Y.  Attrill,  General  Ilerron  applied,  and  with 
him  entered  into  a  contract,  on  the  8th  August,  to  the  following  effect: 

"  Herron  was  to  procure  from  the  Legislature,  and  from  the  City 
Council  of  New  Orleans,  all  the  legislation  necessary  to  the  amend- 
ment of  their  charter  and.  the  acquirement  of  the  city's  interest  in  the 
old  company — the  right  to  purchase  under  appraisement;  also  to  ac- 
quire, by  purchase  or  otherwise,  all,  or  a  controlling  interest  of,  the 
outstanding  stock,  and  to  put  into  the 'pool1  3,250  shares  then  in  his 
possession. 

"  The  cash  then  in  the  treasury  of  the  company  (the  proceeds  of  an 
assessment  of  one-half  per  cent),  some  $S,ooo  or  $9,000,  was  to  become, 
and  be,  the  property  of  the  Syndicate,  and  to  be  used  in  the  purchase 
of  stock,  or  for  other  necessary  expenses  of  the  company.  Attrill  was 
to  advance  in  the  operation  the  sum  of  $25,000,  one-half  cash  and  the 
balance  as  required. 

"  That  in  case  they  were  successful  in  acquiring  the  assignment  of 
the  city's  right  to  purchase  the  old  company,  they  were  to  continue  it 
in  operation,  but  restrict  it  to  a  certain  district,  re-stock  itvfor  a  con- 
siderable additional  sum,  and,  in  addition,  to  bond  it  for  one  million — 
all,  in  addition  to  the  establishment  of  a  new  company,  which  the 
Syndicate  -was  to  have  a  contract  for  building* 

"As  I  have  before  shown,  the  first  step  to  be  accomplished  by  General  Iler- 
ron, under  his  contract  with  Mr.  Attrill,  was  to  secure — by  assignment  to 
themselves — the  right,  of  the  city  to  purchase  the  property  of  the  old  com- 
pany, and  the  second,  the  passage  of  a  legislative  act  amending  the  charter 
of  the  Crescent  City  Gas  Company. 

"The  first  failed,  or,  as  appears  from  the  following  extracts  from  their  cor- 
respondence, the  changed  condition  of  affairs  seemed  to  make  that  move  an 
undesirable  one. 

"  Wibray  to  Herron,  July  30,  1873: 

"  Dear  Herron: — Nothing  from  you  yet.  Walker  has  just  been  in 
and  wants  me  to  give  him  another  $250,  as  he  is  -working  the  Council 
matter  nicely  and  expects  soon  after  the  first — when  Lacey  {City  At- 
torney) has  left — to  bring  it  up  in  the  shape  of  an  injunction  on  the 
old  company,  before  Hawkins;  we  ought  to  pay  him. 

"Wibray  to  Attrill,  August  4,  1873: 

"  There  is  great  uneasiness  among  stockholders  of  the  old  company, 
and  since  our  last  card  in  the  N.  Y.  Herald,  many  of  them  are  feeling 
the  market,  and  I  personally  know  that  at  $1.35  or  $1.40,  quite  a  num- 
ber of  shares  would  change  hands,  but  no  one  seems  willing  near  these 
figures. 

"If  we  succeed  in  inducing  the  Mayor  and  Council  to  take  some 
action,  it  would  soon  tumble;  we  have  a  fair  prospect;  they  appear 
willing  but  afraid  the  papers  will  accuse  them  of  acting  in  the  in- 
terests of  our  company.  Walker  and  Harris  are  working  with  the 
Mayor." 


85 


Then  follows,  on  the  next  forty  pages,  a  recital  of  the  details  of  the 
most  astounding  record  of  bribery,  corruption  and  black-mailing  that 
has  ever  been  disclosed  in  this  country  : 

"  That-  the  k  raid  '  was  an  expensive  one  no  one  can  doubt,  for  while  the 
legitimate  expenditures  of  a  f  aper  company  who ,  had  a  president  serving 
•without  compensation,  and  a  secretary  who  received  but  $25.00  per  month. 
could  not  be  very  great,  yet  we  find,  by  again  turning  to  the  evidence  subse- 
quently given,  that  Mr.  Attrili  testified,  under  oath,  that  on  the  23d  of  De- 
cember, 1873,  his  expenses  amounted  to  about  $70,000,  and  that  he  then  wrote 
it  all  off  to  profit  and  loss. 

"  Qc  (Page  600.)  Your  whole  outlay  was  written  to  profit  and  loss? 
"A.  Yes;  at  that  time  seventy  odd  thousand  dollars,  and  the  entry 
•was  not  reversd  until  July,  1874. 

"  While  during  the  same  examination,  he  testified  as  follows: 

"Qc  (PaSe  606.)  About  what  total  amount  had  been  expended,  to  the 
best  of  your  recollection,  by  yourself  and  your  associates,  in  this  Cres- 
cent Citv  Company  ? 

"A.  It  cost  us,  taking  all  our  agency  and  the  people — I  was  very 
liberal  to  lawyers — betzveen  jive  hundred  and  six  hundred  thousand 
dollars. 

"That  is,  in  nine  months  they  paid  out  between  four  hundred  and  thirty 
and  five  hundred  and  thirty  thousand  dollars,  the  details  of  which  large  ex- 
penditure the  testimony  shows  they  most  positively  declined  to  give." 

Indianapolis  was  visited  by  the  "  opposition,"  led  by  the  gentleman 
to  whom  Mr.  Scott,  in  his  examination,  referred  as  one  of  the  persons 
whom  he  might  possibly  bring  into  the  present  scheme,  and  who.  a 
few  years  ago,  so  signally  failed  in  imposing  upon  the  citizens  of  this 
city. 

They  there  secured  a  foot-hold,  built  a  little  works,  killed  a  most 
estimable  family  with  their  poisonous  compound,  sold  out  for  a  song 
to  the  old  company,  and  passed  away  to  pastures  new. 

The  Journal,  of  that  city,  gives  the  sequel  in  the  following  expres- 
sive and  forcible  language  : 

"  Nothing  that  can  now  be  said  will  change  the  facts  of  the  history  of  the 
transaction  in  the  least,  and  these  facts  are  by  no  means  creditable  to  any  one 
connected  with  the  transaction.  The  admitted  or  established  facts  are  brieflv 
these:  The  men  engaged  in  the  enterprise  were  a  set  of  adventurers  who  go 
from  city  to  city,  making  monej'  for  themselves,  by  threatening  competition 
and  compelling  a  purchase  by  established  companies. 

"They  brought  no  money  with  them,  and  whatever  they  carried  away  was 
made  off  of  some  one  belonging  to  the  city.  The  organization  was  a  skele- 
ton, no  money  having  been  paid  upon  the  stock,  and  zealous  defenders  of 


Be 


the  enterprise  had  no  interest  in  it,  except  the  stock  given  them  for  their  ser- 
vices in  roping  others  into  it.  The  streets  of  the  city  were  torn  up  and  left, 
and  are  to-day  in  a  dangerous,  damaged,  and  unrepaired  condition.  The  re- 
duction made  in  the  price  of  gas  is  no  greater  than  the  reduction  made  in 
other  years,  hefore  the  new  company  was  organized.  The  new  company  was 
the  one  that  maintained  the  price  at  $2.00,  and  insisted  upon  an  agreement 
with  the  old  company  in  the  maintenance  of  a  new  monopoly. 

"The  sale  was  made  in  the  face  of  the  bond  given  to  the  city  fhat  it  would 
not  be  made,  and  the  leaders  in  this  honest  enterprise  are  now  repeating  them- 
selves in  other  cities. 

"  Some  people  may  think  these  are  square  business  transactions,  we  do  not 
think  so. 

The  whole  transaction  is  a  strongly  marked  case  of  Peter  Funk,  from  be- 
ginning to  end,  and  the  only  misfortune  is  that  the  city  allowed  it.self  to  be 
dragooned  into  giving  it  vitality." 

Yonkers,  N.  Y.,  is  another  place  to  which  it  may  not  be  inappro- 
priate to  refer,  calling  your  attention  to  the  following  copy  of  an  edi- 
torial which  appeared  in  the  American  Gas  Light  Journal,  July  2, 
1878: 

"The  gas  consumers  of  that  place  have,  like  many  others,  bought  their 
experience  and  paid  a  high  price  for  it.  Like  the  Communists,  who  expect 
to  compel  the  capitalist  to  pay  them  their  own  price,  whether  it  pavs  him 
or  not,  they  thought  they  could  compel  the  old  company  to  supply  them  with 
gas  below  the  cost  price.  A  ready  and  willing  agent  was  at  hand  with  a 
patent  process  for  making  illuminating  gas  from  wind  and  other  materials, 
which  would  be  of  the  very  best  quality.  After  a  sufficient  number  of  victims 
had  been  trapped  by  the  patent  bait,  the  works  were  erected,  at  great  expense, 
and  in  the  verv  worst  location  that  could  possibly  have  been  selected. 

"T  he  scheme  failed  at  last,  as  it  has  in  many  other  places  before,  and  the 
man  with  his  patent  process  is  now  most  likely  showing  the  great  advan- 
tages of  his  way  of  making  gas  in  other  places,  when  people  are  innocent 
enough  to  listen  to  him. 

"  Then  another  set  of  speculators  arrive,  who  buy  out  the  demoralized 
works,  not  with  their  own  money,  but  with  that  of  a  capitalist  who  was  drawn 
into  their  net.  In  due  time  he  is  -well  plucked,  and  thoroughly  disgusted  with 
all  kinds  of  gas,  whether  made  from  coal,  naphtha,  air.  water,  or  cheek. 

"Then  came  the  usual  cutting  of  prices  to  a  point  that  neither  company 
could  stand  for  amy  length  of  time;  the  consumers  meanwhile  looking  smil- 
ingly on,  in  happy  ignorance  of  the  fact  that  the  loss  must  be  made  good  to 
the  survivor  after  the  conflict. 

"  The  rival  companies  have  now  come  to  an  agreement,  and  the  price  of  gas 
has  been  put  up  to  a  paying  point. 

"  Now,  see  the  fallacy  of  opposition  gas  companies. 

"The  Yonkers  Gas  Light  Company's  works  were  large  enough  to  supply 
double  the  amount  of  gas  required  by  the  people  at  the  time  the  opposition 


<S7 


gas  company  came  onto  the  ground,  and  jet  the  people  of  Yonkers  thought 
that  by  building  another  works,  laying  another  set  of  mains,  and  supporting 
another  office,  they  w  ould  get  their  gas  much  cheaper.  The  price  of  gas  would 
have  been  reduced  in  accordanee  with  the  times,  had  there  been  no  opposition. 
Now  the  interest  on  the  cost  of  the  opposition  works,  mains,  etc.,  has  to  be 
paid  in  addition. 

"  It  has  been  found  in  every  city  where  opposition  works  have  been  intro- 
duced, that  the  people  have  seldom  been  benefited  thereby.  Either  the  dis- 
trict to  be  lighted  is  divided,  or  the  weaker  company  fails;  in  either  case,  the 
price  of  gas  is  not  lowered,  and  some  body  loses  by  the  operation. 

•■  New  York  and  Brooklyn  have  three  times  as  many  gas  works  as  are  act- 
ually required,  and  consequently  gas  can  not  be  sold  as  low  as  it  might  have 
been  under  other  circumstances. 

'•In  almost  every  case  where  an  opposition  gas  company  is  started,  the  gas 
is  to  be  made  from  some  other  substance  than  coal,  and  ' patent  process] 
'  cheapness]  and  4  illuminating  power]  are  the  charmed  words  which  are 
used  to  raise  the  wind. 

"To  a  person  long  connected  with  the  manufacture  of  coal  gas,  it  seems  as 
if  these  '  mysterious  processes  '  for  making  gas  have  their  regular  periods  of 
appearance  and  disappearance,  sometimes  the  same  agent  appearing  many 
times  with  the  same  '  process,'  ''but  very  much  improved1 — the  one  little  thing 
lacking,  that  made  a  failure  of  it  before,  has  been  at  last  discovered,  and  it  is 
now  all  right;  if  you  don't  believe  it,  here  is  Prof.  X's  analysis  of  the  gas, 
and  description  of  process,  etc.  Perhaps  the  time  will  come  when  gas  can  be 
made  cheaper  from  wind  or  water,  or  something  else,  but  it  is  hoped  that  the 
discovery  will  be  made  and  introduced  by  some  regular  engineers,  rather  than 
by  any  of  the  hungry  adventurers  who  are  to  gas  companies  what  the  grass- 
hoppers are  to  the  farmers  of  the  West." 

Detroit  was  being  supplied  with  gas  by  the  Detroit  Company.  The 
owners  of  a  patent  oil  process  fixed  upon  that  place  as  a  promising 
field  for  operations.  The  patent  was  first  offered  to  the  old  company 
at  a  valuation  of  $40,000,  which,  being  refused,  arrangements  were  at 
onre  made  for  forcing  the  issue  by  introducing  an  ordinance  granting 
the  necessary  franchises  to  a  competing  company — under  the  name 
and  style  of  the  Mutual  Gas  Light  Company — which  ordinance  con- 
tains the  following  restrictions : 

"Sec.  1.  First.    To  be  subject  of  all  restrictions  and  regulations  heretofore 
imposed  upon  the  Detroit  Gas  Light  Company. 

"Second.  That  they  should  not  in  any  manner  injure  any  street, 
alley,  avenue,  park,  shade  trees,  etc.,  nor  in  any  manner  disturb  or  in- 
terfere with  any  water  pipes,  sewer,  or  gas  pipes,  etc.,  and  that  they 
would  promptly  comply  with  any  order  or  resolution  of  the  Common 
Council  or  other  proper  authority  in  reference  thereto. 

"Third.  That  they  would  open  but  a  portion  of  any  square  at  one 
time,  etc. 


88 


'•'■Fourth.  That  they  would  be  responsible  and  liable  for  any  dam- 
ages by  reason  of  any  leak,  opening,  or  inciunbranee,  etc. 
"  Sec  2.  In  case  the  said  corporation,  within  one  year  from  the  passage  of 
this  ordinance,  shall  not  have  built  and  completed  gas  works  in  this 
city  sufficiently  extensive  to  enable  it  to  manufacture  gas  to  a  reasonable 
amount;  or  if  it  shall  at  any  time  enter  into  any  combination  with  any 
gas  light  company  concerning  rates  to  be  charged  for  gas,  either  to  die 
city  or  private  consumers,  then  the  consent  given  by  this  ordinance 
shall  cease,  and  this  ordinance  shall  become  null  and  void.  And  the 
said  corporation  is  hereby  expressly  forbidden  to  sell  its  property,  fran- 
chises, or  privileges  to  any  other  gas  light  company,  under  a  penalty  of 
a  forfeiture  to  this  city  of  its  works,  mains,  and  other  property;  and  an 
acceptance  of  this  ordinance  shall  be  deemed  a  consent  by  said  corpor- 
ation that  the  title  of  said  property  shall  vest  in  the  city  at  once  in  case 
of  such  sale. 

"  Sec.  3.  Permits  them  to  furnish  gas  at  as  low  a  price  as  they  please,  but 
restricts  them  to  no  higher  price  than  an  average  of  the  rates  charged 
public  and  private  consumers  in  the  cities  of  Buffalo,  Chicago,  Cleve- 
land, Toledo,  and  Sandusky. 

"  Sec.  4.  Provided  that  they  should  lay  mains  wherever  directed,  and  in  case 
of  neglect  so  to  do,  they  were  subjected  to  the  forfeiture  clause  in 
Section  2. 

"  Sec.  5.    Fixes  the  standard  as  near  as  may  be  practicable  at  16  candles. 

"  Sec.  6.  Provides  that  the  full  sum  of  $500,000  shall  be  subscribed,  and  that 
they  shall  give  a  good  and  sufficient  bond  in  the  sum  of  $100,000,  con- 
ditioned to  perform  all  the  oligations  imposed  upon  it,  but  more  par- 
ticularly those  imposed  by  Section  2. 

"Approved  November  28,  1871." 

In  consequence  of  the  exaggerated  statements  of  profits  put  in  cir- 
culation by  the  opposition,  the  public  were  led  to  believe  that  they 
were  to  be  at  once  relieved  from  such  extortionate  charges.  The  nec- 
essary stock  was  subscribed,  and  much  of  it  by  the  citizens  of  De- 
troit, who  were  led  to  believe  that  it  would  prove  to  be  a  very  profit- 
able investment. 

Works  were  built,  not  in  the  city,  as  provided  for  by  the  ordinance, 
but  just  beyond  the  line,  to  avoid  taxation  ;  mains  were  laid  only  in 
the  more  densely  populated  portions  of  the  city,  but,  notwithstanding 
the  stringent  provisions  of  Section  4,  not  the  slightest  attention  was 
ever  paid  to  the  orders  of  Council  directing  the  piping  of  the  less  pop- 
ulous districts.  War  was  declared,  and  while  in  the  outside  territory 
original  prices  were  maintained,  within  the  competing  district  they  were 
cut  until  gas  was  sold  at  45  cents  per  thousand — less  than  one-half  of 
its  actual  cost. 


89 


The  manufacture  of  gas  by  the  patented  process  was  abandoned, 
and  oil  used  only  as  an  enricher. 

The  original  stock  of  the  new  company  soon  became  valueless,  as 
did  the  subsequent  issues,  but  the  war  went  on  for  a  period  of  nearly 
two  years,  interspersed  with  various  efforts  at  compromise,  until,  in 
July,  1873,  tne  nevv  company  was  compelled  to  raise  additional  funds 
by  the  issuance  of  10  per  cent  bonds,  in  the  sum  of  $200,000,  fol- 
lowed by  another  issue,  of  $100,000,  in  1875,  and  this  by  still  a  third. 

A  compromise  was  finally  effected  in  June,  1877,  by  a  division  of 
territory,  a  purchase  of  each  other's  mains,  and  the  payment  by  the 
new  company  to  the  old  of  the  sum  of  $140,000,  supplemented  by  a 
binding  agreement,  with  penaltie's  attached,  that  forever  afterward  each 
would  refrain  from  encroaching  upon  the* territory  of  the  other. 

The  original  projector  of  the  opposition  scheme,  haying  possessed 
himself  of  the  bonds  of  the  new  company,  at  once  foreclosed  and 
purchased  the  entire  works,  appurtenances,  and  territory,  for  consid- 
erably less  than  one-half  its  cost,  leaving  the  original  stock  entirely 
valueless.  The  citizens  were  indignant,  and  the  Common  Council, 
by  a  vote  of  22  to  2,  repealed  the  ordinance  under  and  by  virtue  of 
which  the  Mutual  or  opposition  company  was  operating.  The  City 
Solicitor  prosecuted  a  suit  for  the  forfeiture  of  the  bond,  but  was  de- 
feated upon  technical  grounds. 

He  then  brought  an  action  in  the  United  States  Court,  to  oust  them 
of  their  privileges  and  forfeit  their  property,  but  was  non-suited  upon 
the  ground  of  no  jurisdiction. 

A  new  suit  was  then  brought  in  the  Wayne  County  Circuit  Court, 
but  it  is  now  undoubtedly  too  late  to  remedy  their  errors  of  the  past. 
An  understanding  was  at  once  had  with  the  old  company,  and  rates 
were  advanced  to  the  uniform  price  of  $2.50,  with  25  cents  discount, 
or  $2.25  net,  being  but  25  cents  less  than  the  price  charged  by  the  old 
company  ten  years  before.  Thus  ended  one  of  the  most  protracted 
and  bitterly  contested  gas  wars  of  which  we  have  any  record,  and  the 
results  of  which  may  be  summed  up  about  as  follows : 

1.  Every  pledge  made  or  promise  given  by  the  so-called- competing  companv 

was  ruthlessly  broken. 

2.  Local  investors  lost  every  dollar  they  put  into  the  new  enterprise 

3.  The  stockholders  of  the  old  company — many  of  them  widows  and  orphans 

— for  nearly  five  years,  lost  legitimate  business  profits  to  which  thev 
were  justly  entitled. 

4.  The  streets  throughout  the  most  populous  portions  of  the  city  were  ruined,. 


90 


not  only  by  the  laving  of  unnecessary  mains  and  services,  but  bv  the 
unrestricted  changes  of  patrons  from  one  company  to  the  other,  as  the 
caprices  or  whims  of  the  consumer  might  dictate. 

5.  In  the  end,  consumers  were  not  benefited  to  the  extent  of  a  farthing,  for 

the  present  reduction  is  much  less  than  would  have,  and  in  nearly  every 
other  city  has,  followed  the  introduction  of  improved  machinery  and  in- 
creased economies,  due  to  the  greater  production  under  one  management. 

6.  By  duplicating  the  capital  necessary  to  do  the  same  amount  of  business, 

the  citizens  of  that  city  have  greatly  lessened  their  chances  of  receiv- 
ing cheaper  gas  for  years  to  come." 

Poughkkepsik,  N.  Y. ,  is  another  shining  example  of  the  "benefits  " 
of  competition. 

After  a  long  and  tedious  competitive  war,  during  which  the  price  of 
gas  gravitated  between  $1.75  and  $1.50,  and  at  which  price  neither 
had  earned  dividends,  the  inevitable  compromise  came,  and  with  it  an 
increase  of  price  to  $2.25. 

In  connection  with  the  notice  of  which  settlement  the  American 
Journal  said : 

"  Notwithstanding  the  numberless  exposures  which  have  been  made  con- 
cerning the  fallacy  of  the  idea  that  opposition  gas  companies  'enter  the  pre- 
cincts of  a  city  for  the  purpose  of  benefiting  gas  consumers  by  permanently 
reducing  the  price.  If  it  could  be  shown  that  such  promises  were  ever  ful- 
filled, in  one  single  instance,  some  slight  shadow  of  excuse  might  be  found 
for  the  gullibility  of  the  American  public." 

Newark,  N.  J.,  offers  another  notable  example  of  the  disadvan- 
tages arising  from  the  admission  of  a  so-called  competing  company,  as 
evidenced  by  the  following  extract  from  a  letter  written  by  a  responsi- 
ble citizen  of  that  city,  intimately  connected  with  gas  interests : 

"  Here  we  had  a  competing  company,  started  in  1869,  who  promised,  in 
writing,  to  furnish  gas  at  $2.00  per  thousand.  By  thus  advertising,  they  ob- 
tained a  foot-hold,  built  their  works,  laid  their  mains,  bought  a  district,  but 
never  sold  a  foot  of  gas  at  a  reduction,  but  charged  the  old  price,  and  would 
have,  had  they  dared,  put  it .  up  to  $4.00.  With  all  this,  though  they  have 
been  in  operation  for  years,  they  have  never,  I  understand,  earned  a  divi- 
dend, and,  consequently,  can  make  no  reduction  in  price  to  their  consum- 
ers; and,  to-day,  from  this  competition,  the  capital  engaged  in  the^  bus- 
iness is  almost  twice  as  large  as  it  should  be,  and  the  price  of  gas  is  nec- 
essarily maintained  to  meet  the  increased  interest  on  the  investment." 

As  a  result  of  their  inconsiderate  action,  the  citizens  of  that  city  are 
to-day  paying  $1.60  per  thousand. 


91 


Atlanta,  Ga.,  was  another  city  that  for  a  longer  period  than  usual 
— nearly  two  years — enjoyed  one  dollar  gas,  but  there,  as  elsewhere, 
the  end  has  come,  as  appears  from  the  following  article  in  the  Amer- 
ican Gas  Light  Journal  of  June  24,  1888: 

M 

"Atlanta  is  puzzling  over  the  fact  that  the  price  of  gas  is  to  be  raised  in 
that  city  to  $1.50  per  thousand  cubic  feet.  What  makes  the  puzzle  very 
dense  is  the  fact  that  the  old  company,  on  a  basis  of  70  million  cubic  feet 
per  year,  with  gas  at  one  dollar  per  1,000,  was  able  to  earn  a  good  dividend 
and  put  by  a  comfortable  surplus  every  twelve  months;  whereas,  the  Con- 
solidated Company  —  which  was  to  employ  'a  much  cheaper  process  for 
making  gas  than  that  pursued  by  the  old  company  " — with  a  business  of  at 
least  100  million  cubic  feet  per  year  and  a  perfectly  free  field,  finds  it  nec- 
essary to  increase  the  selling  rates  50  per  cent. 

"After  all,  the  puzzle  is  not  such  a  very  difficult  one;  it  is  the  old,  old  story 
of  creating  two  capitals  to  accomplish  the  work  of  one,  and  then  presum- 
ing that  the  investors  will  be  indifferent  as  to  whether  or  not  dividends  are 
to  be  earned  on  two  investments." 

Evansville  was  solicited  to  enjoy  the  alleged  pleasures  and  bene- 
fits of  competition,  but  respectful  y  declined — the  Council  Committee 
saying : 

"  Many  cities  have  tried  the  experiment,  but  in  no  instance  has  competition 
brought  lower  prices.  This  fact  may  appear  inexplicable,  anomalous,  and  di- 
rectly contrary  to  what  has  been  regarded  as  the  universal  rule  of  trade — that 
competition  does  not  lower  prices.  But  if  the  nature  of  the  business  is  taken 
into  account,  the  amount  of  capital  required  to  establish  the  plant,  and  the 
absolutely  limited  field  from  which  it  must  draw  its  support,  the  mystery  will 
vanish,  and  the  truth  of  the  proposition  that  no  lasting  public  benefit  can  be 
got  through  a  competing  gas  company  will  be  readily  recognized  bv  every  in- 
telligent man,  and  the  wisdom  of  the  action  of  Council  be  acknowledged.  We 
have  the  experience  of  many  cities  before  us,  and  we  ought  to  be  wise  enough 
to  profit  by  it. 

"  It  all  teaches  the  same  lesson,  and  we  can  get  it  for  the  trouble  of  inform- 
ing ourselves,  while  to  buy  such  experience  would  prove  an  expensive  and 
useless  luxury." 

Chattanooga  was  another  city  that  enjoyed,  for  a  brief  period, 
the  pleasant  sensation  of  being  supplied  with  dollar  gas,  during  which 
''laughing  period"  the  Chattanooga  Commercial  said: 

"  Gas  at  one  dollar  per  thousand  is  cheap  enough,  still  it  is  doubtful  if  any 
•one  will  grumble  should  it  go  still  lower. 

"  Yet  all  things  must  have  a  limit,  and  this  'throat  cutting'  will,  in  the  end. 


92 


hurt  the  contesting  companies,  and  in  no  way  benefit  our  citizens;  upon  the 
contrary,  they  will  have  the  pleasure  of  paying  for  the  blood  spilled,  and  have 
but  themselves  to  blame  for  allowing  the  whole  thing  to  come  to  pass." 

The  prediction  has  been  fulfilled ;  compromise  followed  competi- 
tion, and  the  citizens  of  that  city  are  to-day  paying  $1.70  per  thou- 
sand. 

San  Francisco  enjoyed,  for  a  time  previous  to  1885,  gas  at  $1.50 
through  competition,  but  the  following  extract  from  a  letter  to  one  ot 

our  leading  journals  gives  the  sequel : 

"  The  two  gas  companies  here,  the  old  company  and  the  new,  have  both  en- 
tered into  a  compact  and  advanced  the  price  of  gas  from  $1.50  to  $2.21;  per 
1,000  cubic  feet.  The  papers  made  quite  a  fuss  over  it  at  the  time,  but,  of 
course,  it  amounts  to  nothing. 

"All  the  consumers  have  to  do  is  to  pay  their  little  bills  at  the  new  price. 
It  makes  quite  an  additional  revenue  to  the  gas  companies,  and  has  advanced 
the  market  priee  of  their  stocks  to  quite  a  respectable  figure." 

In  Troy,  N.  Y.,  competition  ended  in  districting,  and  the  addition 
of  $700,000  in  stocks  and  bonds  upon  which  gas  consumers  must  pay 
dividends,  and,  to  enable  them  to  do  so,  the  price  of  gas  is  still  main- 
tained at  $2.00,  which,  considering  the  location,  is  33  per  cent  more 
than  it  would  have  been  had  there  been  but  one  company. 

In  Newburgh,  N.  Y..  the  Lowe  water  gas  people  built  competing 
works  in  1878.  The  old  company  was  supplying  gas  to  the  city  on  a 
capital  of  $75,000.  The  new  company  capitalized  their  works  for 
$200,000,  and  have  an  indebtedness  of  $65,000.  It  then  cost  that 
little  city  $4,000  to  repair  streets  upon  which  but  ten  miles  of  mains, 
were  laid,  and  are  still  paying  $2.50  per  one  thousand. 

In  Trenton,  N.  J.,  after  a  short  fight,  the  Water  Gas  Company 
sold  out  to  the  old  company,  adding  largely  to  the  capital,  without 
benefiting  the  consumers,  who  are  still  paying  $2.00. 

In  Charleston,  S.  C,  they  had  a  short  run  of  competition,  end- 
ing in  consolidation,  and  an  increase  of  capital  from  $400,000  to 
$766,000,  thus  rendering  an  equitable  reduction  impossible,  and,  as  a 
consequence,  they  are  to-day  paying  $2.00. 

Albany,  N.  Y..  has  had  competing  works,  ending,  as  usual,  in  dis- 
tricting, and  adding  $1,000,000  to  the  capital,  on  which  earnings  must 
be  made  with  gas  at  $2.00  per  thousand.  And,  notwithstanding  this 
fact,  the  new  company  never  made  a  dividend,  and  soon  went  into 
the  hands  of  a  receiver. 

Thus  do  these,  and  other  cities  that  listened  to  the  siren  song  of  the- 


93 


seducer,  stand  as  monuments  to  mark  the  folly  of  those  who  believed 
that  through  competition  lay  the  road  to  lower  prices. 

FAVORABLE  ACTION  OX  THIS  ORDINANCE  WILL  DEPRECIATE 
THE  VALUE  OF  THE  LOCAL  INVESTMENTS  OF  OUR  OWN  CIT- 
IZENS IN  THE  INTEREST  OF  FOREIGN  ADVENTURERS  AND 
SPECULATORS. 

So  timid  is  capital  that,  should  this  ordinance  be  approved  by  your 
Board  and  go  to  a  final  passage,  even  if  a  briek  be  never  laid  or  pipe 
bought,  it  can  not  be  questioned  that  the  effect  would  be  to  depreciate 
the  market  value  of  the  stock  of  the  present  company,  which,  be  it  re- 
membered, gentlemen,  is  but  a  local  manufacturing  organization,  owned, 
operated  and  officered  by  the  citizens  of  this  city,  who,  for  over  fo?ty 
years,  have  faithfully  fulfilled  every  contract  and  moral  obligation  im- 
posed upon  them,  and  thus,  by  able  and  satisfactory  management,  con- 
tributed as  much  as  any  other  one  cause  to  the  growth  and  prosperity 
of  our  city.  For  such  reasons,  this  interest  is  certainly  entitled  to  just, 
fair,  and  liberal  consideration,  if  not  to  the  aid,  encouragement,  and 
protection  of  the  official  representatives  of  the  city  government. 

In  this  connection,  so  appropriate  appear  the  words  of  Mr.  Sted- 
man,  in  his  letter  to  Mr.  Fitch,,  that  I  shall  take  the  liberty  of  here 
quoting  them  : 

"  It  appears  to  me  too  plain  to  admit  of  argument,  that  when  a  community 
has  established  an  agreement  with  a  corporation  to  grant  them  certain  priv- 
ileges and  immunities,  and  have  thereby  induced  the  corporation  to  invest  its 
means  for  a  specific  purpose,  and  that,  too,  in  such  a  shape  that  the  corpora- 
tion can  not  resume  its  capital  again  for  some  other  purpose,  even  though 
their  immunities  be  infringed  and  their  privileges  curtailed,  that  the  com- 
munity is  bound  by  every  principle  of  justice  and  equity  to  not  only  refrain 
'from  impairing  by  their  own  act,  but  to  prevent  any  action  of  another  from 
impairing  in  any  degree  those  original  rights  or  grants  which  constituted  the 
strongest  inducement  for  the  corporation  to  invest  its  capital. 

"  The  community  ought  neither  of  itself,  directly  or  indirectly,  to  allow 
-others  to  infringe  those  rights  to  the  loss,  damage,  detriment,  or  even  incon- 
venience of  the  original  corporation." 

Justice  Harlan,  in  delivering  the  opinion  of  the  United  States  Su- 
preme Court  in  the  Louisville  and  New  Orleans  Gas  Cases,  probably 
the  most  important  that  have  ever  been  passed  upon  affectina:  the  gas 
interests  of  this  country,  referred  to  the  Binghampton  case,  in  which 
Justice  Davis  said : 


94 


"The  wants  of  the  public  are  often  so  imperative  that  a  duty  is  imposed  on 
the  government  to  provide  for  them;  and- as  experience  has  proved  that  the 
state  should  not  directly  attempt  to  do  this,  it  is  necessary  to  confer  upon 
others  the  faculty  of  doing  what  the  sovereign  power  is  unwilling  to  under- 
take. The  legislature,  therefore,  says  to  the  public  spirited  citizen,  if  you 
will  embark  with  your  time,  money,  and  skill,  in  an  enterprise  which  will  ac- 
commodate the  public  necessity,  we  will  grant  to  you,  for  a  limited  period  or 
in  perpetuity,  privileges  that  will  justify  the  expenditure  of  your  money  and 
the  employment  of  your  time  and  skill.  Such  a  grant  is  a  contract  with  mu- 
tual considerations ;  ami  justice  and  good  policy  alike  require  thai  the  pro- 
tection of  the  law  should  be  assured  to  it." 

And  will  follow  it  by  extracts  from  an  editorial,  which  appeared  in 
the  Brooklyn  Eagle  of  June  5,  1877,  based  upon  the  report  that  the 
mayor  of  that  city  had  expressed  his  approval  of  a  scheme  to  intro- 
1  duce  another  company  into  that  already  gas-burdened  community  : 

"  There  are  now  five  gas  companies  in  operation  in  the  western  district  or 
this  city,  known  respectively  as  the  Brooklyn,  the  Citizens',  the  Nassau,  the 
People's,  and  the  Metropolitan. 

"There  is  one  company  in  the  eastern- district  known  as  the  Williams- 
burgh  Gas  Light  Company.  The  aggregate  capital  invested  in  these  six 
companies  can  not  fall  short  of  between  eight  and  ten  millions  of  dollars. 
Three  of  the  largest  companies  have  obtained,  on  the  average,  a  life  extend- 
ing beyond  the  generation  of  men.  It  follows,  as  a  consequence,  that  their 
stock  is  widely  diffused,  and  that  much  of  it  is  owned  by  widows  and  or- 
phans, who  have  inherited  it.  It  is,  too,  safe  to  say  that  five-sixths  of  all  the 
capital  invested  in  local  gas  stock  is  the  property  of  citizens  of  Brooklyn. 
It  needs  no  argument  to  convince  any  business  citizen  that  a  blow  struck 
at  an  investment  of  this  extent  and  character  must  disastrously  imperil 
widespread  private  interests,  and  in  doing  so  demoralize  and  injure,  m^re  or 
less,  the  aggregate  business  prosperity  of  an  entire  community.  A  [con- 
flagration in  Brooklyn,  which  should  destroy  five  or  ten  million  dollars' 
worth  of  our  property,  would  be  a  terrible  blow  at  this  city,  and  in  the 
widespread  loss  which  w^ould  follow,  it  might  fairly  be  regarded  as  a  national 
misfortune. 

"  We  can  readily  conceive  of  public  interests  so  important  that,  in  view  of 
them,  a  community  would  be  justified  in  overlooking  even  private  and  vested 
rights. 

"  If  it  could  be  shown,  for  instance,  that  the  Brooklyn  Gas  Companies  were 
making  monstrous  gains  from  their  exactions  on  gas  consumers,  the  repre- 
sentatives of  the  city  would  be  entirely  justified  in  taking  steps  for  the  relief" 
of  the  public,  although  in  doing  so  it  might  be  easy  to  show  that  a  citizen 
who  invested  his  money  in  gas  stock,  in  good  faith,  would  lose  a  great  part 
of  it,  or  that  even  the  widow  and  the  fatherless,  who  relied  upon  the  dividends 
on  the  gas  stock  they  had  inherited,  should  be  left  entirely  destitute  of  in- 
come.   Private  interests  in  such  cases  must  give  way  to  the  general  interest, 


95 


just  as  in  case  of  a  conflagration,  a  citizen's  propert  y,  apparently  remote  from, 
its  effects,  may  be  blown  up  and  destroyed,  in  view  of  tbe  general  danger  and 
to  secure  the  general  safety.  But  what  will  be  thought  of  men  who,  for  selfish 
and  sinister  ends,  strike  at  vested  interests,  impair  the  value  of  their  neighbors' 
property,  and  bring  sorrow  and  despair  to  households  depending  on  the  in- 
come from  such  property  tor  their  means  of  living?  How  much,  in  such 
a  case  as  this,  does  the  raider  on  private  rights  and  private  investments 
differ  from  the  midnight  incendiary,  who,  in  order,  it  may  be,  to  swindle  an 
insurance  company,  exposes  the  property  and  the  lives  of  his  neighbors  to 
destruction  ? 

"The  relation  which  the  Eagle  has  always  borne  to  the  gas  companies  ot 
this  city  must  be  as  well  understood  in  this  community  as  any  thing  which 
has  ever  concerned  it  can  be.  "  We  have  resisted  them  when  we  thought  their 
profits  were  exorbitant,  and  when  no  other  recourse  was  left  to  us,  we  have 
urged  opposition  against  them,  and  not  unfrequently  the  Eagle's  support  was 
the  chief  support  the  opposition  had.  Grown  up  with  this  community,  in- 
terested in  one  way  or  another  with  every  public  interest  in  it,  and  holding 
always  to  the  general  good  as  against  any  special  interest,  it  is  the  Eagle's 
duty  to  defend  the  vested  rights  of  citizens,  while  it  has  always  held  that  the 
intelligent  self-interest  of  our  local  corporations  made  their  interest  and  that 
of  the  public  the  same.    .    .  . 

"  Does  any  body  believe  that  such  public  benefactors  as  James  Jourdan  have 
any  money  to  risk  in  such  an  enterprise  ?  The  existing  gas  companies  must 
retain  their  present  customers,  in  the  face  of  any  opposition,  or  get  out  of  ex- 
istence at  once.  Is  it  conceivable  that  capitalists  are  going  to  risk  three 
million  dollars  in  trying  the  experiment  of  driving  them  out  ?  Does  Mayor 
Schroeder  honestly  think  so  ?  Whether  he  knows  it  or  not,  his  announce- 
ment, yesterday,  of  his  warm  approval  of  Jourdan's  enterprise  has  reduced 
the  personal  estate  of  his  fellow-citizens  (invested  in  gas  stock)  over  eight 
hundred  thousand  dollars,  while  it  throws  a  cloud  over  nearly  the  million 
dollars'  worth  of  property  held  mainly  by  the  Brooklyn  people.  In  return, 
what  advantage  is  promised  to  the  public  ?  In  his  'puff'  of  Jourdan's  enter- 
prise, the  Mayor  assures  us  that  Jourdan  and  his  associates  propose  to  sell 
ga>  at  a  rate  twenty  per  cent  less  than  is  charged  at  present.  The  Mayor 
knows  that  the  rate  charged  for  gas  has  very  little  to  do  with  gas  bills.  The 
companies  could  charge  half  their  present  rates,  and  collect  the  same  amount 
of  money,  by  resorting  to  unfair  dealing,  which  no  gas  meter  would  disclose. 
But  we  are  assured  that  the  quality  of  the  Jourdan  gas  will  be  as  good  as 
that  we  are  using  at  present.  Who  is  to  determine?  How  can  such  a  point 
be  determined  nigrit  after  night  ?  We  must  rely,  after  all,  on  the  existence  of 
a  spirit  of  fair  dealing  on  the  part  of  the  gas  companies.  Can  we  rely  upon 
obtaining  fair  dealing  only  from  Jourdan  and  his  associates?  In  view  of  all 
the  facts,  would  the  Eagle  do  its  duty  if  it  did  not  warn  the  public  against  a 
scheme  engineered  by  scheming  politicians?  By  yesterday's  move.  Brooklvn 
gas  stocks  were  '  beared  '  at  least  ten  per  cent.  If  next  week  the  political  gas 
men  should  cause  it  to  be  announced  that  they  had  not  found  their  enterprise 
feasible,  gas  s'ock  would  go  up  again,  probably,  ten  per  cent.  Is  it  right  that 
any  men,  or  set  of  men,  should  have  the  power  of  '  kiting  '  the  property  of 


96 


others  in  this  way  ?  Mayor  Schroeder,  it  is  not  right,  and  if  you  should 
live  to  be  a  very  old  man,  and  should  devote  your  life  to  it,  you  could  not 
serve  one-tenth  as  many  of  your  fellow-citizens  as  you  yesterday  used 
your  official  power  to  injure.  Jourdan's  gas  company  will  never  be  estab- 
lished, but  his  power  for  mischief  does  not  depend  on  the  fad  of  whether  it 
is  or  not." 

And  now  comes  the  sequel,  as  will  more  fully  appear  from  the  fol- 
lowing editorial,  which  appeared  in  the  Eagle  of  May  10,  1878: 

"The  history  of  the  notorious  Mutual  Gas  combination  has  been  made 
familiar  to  every  person  who  can  read  and  who  feels  an  interest  in  Brooklyn 
affairs. 

"  A  more  scandalous  abuse  of  municipal  authority  has  never  been  known 
in  this  city  than  was  perpetrated  when  our  Board  of  Aldermen  and  Mayor 
Schroeder  combined  to  give  to  a  gang  of  needy,  adventurous,  unscrupulous 
politicians  a  charter  to  build  or  not  to  build,  to  sell  or  not  to  sell,  at  their 
pleasure,  certain  gas  works,  in  whatever  part  of  the  city  they  deemed  proper, 
with  the  accompanying  power  to  tear  up  any  of  the  streets  of  Brooklyn  with- 
out restriction.  Every  alderman  who  voted  for  the  charter  knew  that  the 
men  to  whom  it  was  given  had  no  money  to  invest  in  the  proposed  enterprise, 
and  must  therefore  have  known  that  the  only  purpose  of  the  incorporation 
was  to  obtain,  without  cost,  but  at  the  expense  of  Brooklyn,  a  power  which 
might  be  either  disposed  of  at  considerable  price  to  outside  speculators,  or  be 
used  to  extort  money  from  the  established  companies.  After  the  charter  was 
passed,  the  Mayor  (Mr.  Schroeder)  permitted  the  politicians  to  whom  it  was 
given  to  use  it  as  they  pleased  for  nearly  two  years  without  exacting  from 
them  a  single  guarantee  of  good  faith.  The  effect  of  the  charter  was  seen, 
not  in  bringing  any  reduction  in  the  price  of  gas  to  the  people,  but  in  dimin- 
ishing the  price  of  gas  stock,  the  Mutual  charter  became  an  instrument  for 
'bearing'  purposes,  and  thereby  hundreds  of  widows  and  thousands  of  chil- 
dren, who  had  their  estate  invested  in  such  stock,  were  brought  to  embarrass- 
ment, if  not  poverty.  The  best  possible  proof,  however,  of  the  intent  of  the 
Mutual  gas  men  is  in  fact  that  specified  works  have  never  been  constructed ; 
that  the  capital  stock  was  never  paid  in;  that  the  Attorney-General  of  the 
State  took  action  to  remove  the  corporation  from  the  face  of  local  affairs. 
The  enterprise  was  simply  a  rascally  speculation." 

The  following  article,  which  appeared  in  the  English  Gas  Light 
Journal  of  November  17,  1885,  so  clearly  expresses  the  evils  of  com- 
petition, from  a  financial  standpoint,  that  it  is  well  worth  considera- 
tion : 

"It  is  astonishing  to  note  how  apathetic  the  people  of  the  United  States  are 
in  the  face  of  practical  matters  of  this  kind. 

"  Good  laws  are  every  thing  when  the  investment  of  capital  is  required  in 
great  undertakings  or  industries  which  are  rooted  in  the  soil. 


97 


*  It  is  impossible  for  gas  lighting  to  develop  and  confer  upon  town  popula- 
tions all  the  benefits  of  which  it  is  capable,  unless  the  security  of  the  invest- 
ment is  placed  beyond  doubt.  This  fundamental  point  has  never  vet  been 
understood  by  the  law  makers  of  the  United  States,  and  if  General  Hicken- 
looper,  Mr.  Vanderpool,  or  their  associates  can  convince  their  fellow-citizens 
of  its  importance,  they  will  do  more  toward  securing  cheap  gas  in  the 
United  States  than  all  the  inventions  of  inventors  have  been  able  to  do  since 
gas  was  first  made. 

"Although  there  is  no  business  in  which,  from  the  stand-point  of  public 
utility,  competition  is  more  illusory  and  ruinous  than  in  gas  making,  there  is 
also  none  which  has  of  late  years  fallen  so  effectively  a  prey  to  it.  The  re- 
sult has  been  to  overwhelm  a  splendid  industry  with  a  burden  of  watered 
stock,  representing  little  beside  the  destructive  ability  of  the  competitor  and 
the  astonishing  apathy  of  the  public  to  such  ruinous  practices." 

The  following  extract  is  made  from  the  admirable  Annual  Address 
of  Wm.  A.  Stedman,  President  of  the  American  Gas  Light  Associa- 
tion, at  its  meeting  in  Washington  City,  October  15.  1884: 

••  When,  in  former  times,  the  lust  of  gold  led  men  to  roam  the  seas  in  search 
of  plunder,  and  privateers  came  into  port  laden  with  the  spoils  of  piracy,  the 
allurements  of  sudden  acquisition  of  wealth  so  stimulated  desire  that  the  ocean 
swarmed  with  legalized  robbers,  and  success  quieted  scruple.  But  after  a 
time  no  ship  was  safe;  no  enterprise  could  be  secured  against  the  hazard  of 
plundering  freebooters  of  the  sea.  Capital,  which  had  provided  the  outfits  for 
the  marauders  enlisted  in  its  service  of  spoliation,  stood  aghast  at  the  logical 
outcome  of  its  teachings  and  example.  The  pirates  increased  till  they  almost 
outnumbered  the  ships  of  peaceful  trade,  and  the  enlisted  robbers  even  ig- 
nored the  tradition  of  honor  among  thieves,  and  confiscated  the  property  of 
their  employers.  Then  the  latter  bewailed  the  dishonesty  of  the  world,  and 
an  international  agreement  put  down  piracy  upon  the  high  seas. 

"  Xow  the  freebooters  operate  upon  the  land.  Legislation  is  apathetic, 
while  the  craft  and  cunning  of  greed  imposes  upon  communities,  and  robs  the 
rich  and  poor  indifferently  of  honest  accumulation  or  scanty  savings.  Con- 
scienceless and  pitiless,  vaunting  its  power  and  unscrupulousness,  combined 
capital  is  seeking  to  destroy,  by  methods  not  more  moral  or  reputable  than  the 
old-time  pirates  employed,  the  investments  which  in  many  cases  are  almost 
the  sole  reliance  of  those  for  whose  protection  the  law  ought  to  be  effectually 
invoked. 

■'  I  low  long  these  raids  on  property  will  be  tolerated,  and  how  much  longer 
communities  will  be  blind  to  their  own  interests,  and  legislators  will  fail  to 
discriminate  between  the  honest  claims  of  their  own  constituents  and  the 
specious  pretenses  of  adventurers,  no  one  can  now  foresee.  But  just  as  free- 
booting  on  the  seas  became  intolerable,  so  will  this  land  piracy  be  eventually 
suppressed,  as  the  mutual  destruction  wrought  by  contending  capital  will 
be  seen,  not  the  blessing  which  it  is  claimed  to  be,  under  the  beguiling  name 


OS 


of  competition,  but  the  unmixed  evil  which  comes  from  the  destruction  of 
property,  or  from  rendering  it  wholly  or  partially  unproductive.  The  con- 
stant and  widespread  agitation  on  the  subject  of  gas  supply,  and  the  conse- 
quent enlightenment  of  the  public  in  regard  to  the  character  of  the  business, 
as  well  as  the  frequent  exposure  and  defeat  of  blackmailing  and  fraudulent 
schemes  of  many  of  the  so-called  'gas  improvement  companies,'  all  tend  to- 
ward the  inevitable  result,  which,  whether  it  come  sooner  or  later,  must 
eventually  come — and  that  is  the  regulation  of  gas  supply,  and  the  guarantee 
of  protection  to  investments  honestly  made  in  the  business." 

HIGHWAY   ROBBERY   REDUCED  TO  A  SYSTEM. 

To  conclusively  prove  that  this  species  of  highway  robbery  has  been 
reduced  to  a  science,  it  would  appear  only  necessary  to  refer  to  two 
recorded  and  incontrovertible  instances ;  the  first  being  the  case  of 
the  People's  (las  Light  and  Coke  Company,  organized  in  this  city 
some  years  since. 

Petitions  were  circulated  by  canvassers  paid  a  fixed  sum  per  name. 
The  entire  city,  from  the  river  to  Cumminsville,  and  Millcreek  to 
Crawfish,  was  thoroughly  canvassed.  Thousands  of  confiding  citizens 
were  induced  to  sign  an  agreement  to  take  gas,  and  not  a  few  to  take 
stock,  under  representations  that  gas  would  at  once  be  distributed 
over  the  entire  territory. 

A  prominent  office  was  rented,  signs  put  up,  circulars  printed  and 
distributed,  showing  the  immense  profits  to  be  derived  from  the  busi- 
ness ;  stock  books  opened,  and  the  names  of  several  prominent  East- 
ern capitalists  given  as  the  backers  of  the  concern — such  was  the  out- 
side. The  following  paper  represents  the  inside,  as  given  to  one  of 
the  interested  parties,  and  which  I  was  afterward  permitted  to  copy, 
and  the  genuineness  of  which  document  I  am  at  any  time  prepared 
to  prove. 

It  will  be  observed  that  their  inside  operations  were  to  be  quite  mod- 
est as  compared  with  their  outside  pretensions ;  and  that  their  hopes 
of  gain  were  based  not  upon  the  distribution  of  gas,  but  through  the 
construction  of  works  and  the  robbery  of  their  own  innocent  and  con- 
fiding stockholders  : 

"  PLAN    OF  ORGANIZATION. 

"  i st. "Organize  a  company,  we  name  four  directors,  they  name  three,  seven 
directors. 

"  2d.  We  then  go  before  council,  get  rights  to  the  streets,  etc.,  meeting  with 
little  opposition. 

"3d.  The  People's  Gas  Company,  or  directors,  then  contract  with  W.  B. 
McD.  &  Co.  for  the  erection  of  works,  say  at  a  cost  of  $350,000,  stock. 

"4th.  W.  B.  McD.  &  Co.  then  agree,  or  enter  into  an  agreement  with  the 


99 


first-named  four  directors,  to  divide  with  them  in  equal  proportions  as  to  the 
profits  from  said  contract,  said  directors  receiving  one-half  and  W.  Ji.  Mcl). 
&  Co.  one  half. 

"5th.  We  then  go  up  to  the  east  end,  and  build  a  small  works,  say  10-inch 
capacity,  300,000  cubic  feet,  cost  about  $70,000,  without  pipe. 

u6th.  Now,  to  raise  this  required  $70,000,  we  pool  the  stock,  which  is  placed 
in  the  hands  of  a  trustee,  with  instructions  to  sell  enough  to  raise  the  required 
$70,000,  the  balance  to  be  held  by  said  trustee  until  completion  of  the  works, 
and  then  divided  as  aforesaid  in  section  No.  4. 

"7th.  We  have  already  had  subscribed  here  about  $20,000  stock,  with  the 
assistance  of  the  first  four  named  directors,  together  with  stock  which  can  be 
placed  east  for  machinery,  and  here  for  buildings,  etc.;  we  can  place  say 
$60,000  additional,  which  makes  in  all  say  $80,000  stock,  placed,  say  at  seventy 
cents,  makes  $56,000,  which  leaves  a  deficiency  of  but  $14,000,  which  is  to  be 
made  up  by  said  W.  B.  McD.  &  Co.,  and  said  first  four  directors,  for  which  we 
receive  $270,000  in  stock. 

"  8th.  When  the  works  are  completed,  no  doubt  arrangements  can  be  made 
with  the  Cincinnati  Gas  Company  whereby  we  can  get  a  certain  district  of 
say  1,000  consumers  in  the  east  end,  taking  their  street  mains,  meters,  etc., 
and  pay  them  in  stock  or  bonds  of  the  new  company,  or  make  such  other 
arrangements  as  may  be  determined  upon  hereafter" 

Another  interesting  testimonial  to  genius  and  enterprise  of  such 
swindlers  is  presented  by  the  American  Gas  Light  Journal,  which  ex- 
posed a  swindle  of  this  character  by  the  publication  of  a  confidential 
or  inside  letter  of  instructions  to  one  of  their  agents,  as  follows : 

"  No.  87  Astor  House,  N.  Y.,  February  17,  1877. 

"  Dear  Sir:— Your  several  favors  received.  All  efforts  with  old  gas  com- 
panies seem  to  prove  fruitless.    Your  idea  in  relation  to  is  the  true 

course.  Obtain  charter  and  concessions  from  cities,  if  possible,  in  relation  to 
municipal  consumption,  street  lights,  etc.  Organize  a  new  company,  under 
the  auspices  of  prominent  citizens,  the  largest  consumers. 

"Capitalize  and  bond  the  company,  giving  bonds  at  about  90  per  cent,  and 
a  bonus  of  say  25  per  cent  stock  for  money  to  build  the  works. 

"  To  lay  a  certain  number  of  miles  of  pipe,  and  build  works,  will  require  a 
certain  sum  of  money.  The  idea  would  be  for  you  and  I  and  associates  to 
take  the  contract  to  do  this  work,  at  a  price  that  will  leave  us  some  money, 
also  stock  and  bonds  in  addition. 

"  We  can  settle  with  in  kind,  that  is.  in  the  stock  and  bonds  of  any 

company  to  be  organized. 

"Pipe  also  can  be  had  upon  a  kindred  basis,  so  that  is  equal  to  capital 
cash  subscribed— in  short,  the  way  is  to  organize  a  company,  and  then  I  will 
find  some  one  to  take  control  on  a  profitable  basis,  we  to  share  the  profits  in 
kind,  cash,  bonds,  and  stock.  Paying  out  only  25  per  cent  of  the  stocks,  we 
might  become  the  owner  of  three-quarters  of  the  stock.  This  is  all  a  matter 
of  detail  and  negotiation. 


100 


"To  lay  say  30  miles  of  pipe,  and  build  works  to  correspond,  would  cost  say 
$250,000,  and  each  additional  5  miles,  say  $20,000  more. 
"  This  gives  you  a  tolerably  safe  guide. 

"  Now,  say  of  works  to  be  built  of  this  capacity,  we  should  calculate  upon 
bonding  it  to  extent  of  not  less  than  $600,000. 

"  Old  gas  companies  have  stocks  and  bonds,  and  pay  dividends  and  interest. 

"  Pipe  can  be  had  for  $35  per  ton.  So  make  up  your  mind  that  gas  works 
can  be  built  very  cheap,  and  with  our  process,  and  not  having  an  artificial  or 
inflated  indebtedness,  will  have  a  decided  advantage. 

u  We  are  no  longer  willing  to  give  absolute  guarantees;  success  has  been 
demonstrated,  and  is  opened  to  investigation.  The  price  upon  which  gas  can 
be  made  depends  upon  the  price  of  crude  oil,  naphtha,  etc.,  but  this  is  not  ma- 
terial. Where  coal  is  high,  the  Lowe  process  will  have  comparatively  an  ad- 
vantage of  coal  gas  works.  A  very  handsome  saving  may  be  effected  in  one 
locality,  and  not  so  much  in  another.  The  reasons  will  be  obvious  to  you  at  a 
glance. 

"  In  1  the  Lowe  process  will  come  in  play  magnificently.    Under  all 

circumstances,  my  advice  is  entre  nous.  If  you  have  encouragement,  go 
ahead,  and,  when  the  proper  time  comes,  conflicting  interests,  if  any,  can  be 
harmonized  or  strengthened  by  combining.  You  understand.  I  can  fix  that 
here.  The  most  vital  question  is  to  get  the  charter  concessions,  if  possible, 
from  the  city,  stock  and  bonds  subscribed  for,  citizens  committed  to  take  the 
gas;  all  other  matters  can  be  subsequently  arranged. 

"  I  have  endeavored  to  write  somewhat  fully  to  you,  giving  you  the  benefit 
as  to  what  I  know  of  the  course  pursued  here  in  reference  to  organizing  new 
companies.  You  will  find  it  a  waste  of  time  fooling  with  old  companies,  as  I 
have  previously  told  you.    Very  truly  yours,   ." 

Mr.  Dwight.  the  General  Manager  of  the  Lowe  process,  at  whose 
'office  and  under  whose  "letter-heads"  the  communication  was  writ- 
ten, denied  that  he  was  its  author.  The  editor  of  the  Journal,  in 
commenting  upon  his  denial,  said  : 

"  Now,  we  have  never  believed  in  multiplying  gas  companies  in  any  one 
community,  and  the  reason  for  this  belief  we  have  often  given,  but  here  seems 
to  be  sort  of  general  scheme  for  multiplying  organizations  with  all  its  attend- 
ant evils  of  stocks,  bonds,  etc.  Multiplied  ad  libitum.  This  is  a  very  im- 
portant matter  to  the  people  who  have  already  invested  capital  in  the  gas 
business;  and,  as  many  of  our  readers  are  people  of  that  class,  we  laid  this 
matter  before  them.  The  only  singular  thing  about  the  letter,  in  view  of  Mr. 
D wight's  denial,  is  that  the  letter  should  have  been  dated  from  Mr.  Dwight 's 
office,  and  that  below  the  signature  should  have  been  the  P.  O.  Box,  No.  1,110, 
same  as  before.    This  is  doubtless  a  mere  coincidence." 


The  following  may  be  suggestive  of  existing  conditions.  Professor 


101 


Chandler,  in  his  recent  testimony  before  the  Committee  on  Manufact- 
ure of  Massachusetts  Legislature,  said  : 

"In  the  days  of  the  '  Tweed  ring,' it  was  seen  br  Tweed  and  his  friends 
that  there  was  money  to  be  made  in  gas.  They  got  some  capitalists  together 
and  said  to  them,  '  If  you  can  get  a  sort  of  roving  commission  for  supplying 
gas  in  New  York,  you  will  not  have  to  do  as  the  other  companies  do;  you 
can  run  vour  pipes  where  you  please.  You  can  pick  out  those  streets  which 
are  densely  populated,  where  the  hotels  and  theaters  are,  and  run  your  mains, 
and  in  this  way  you  can  secure  the  cream  of  the  business.'  They  expected 
to  accomplish  their  purpose  through  Tweed's  political  power,  but  the  '  ring ' 
fell  to  pieces  " 

THE  BEST  AND  MOST  ECONOMICAL  "FUEL  GAS"  NOW  KNOWN 

TO  SCIENCE. 

for  all  purposes  to  which  gaseous  fuel  can  be  properly  applied,  is  un- 
doubtedly the  coal  gas  which  is  now  being  made  and  delivered  to  the 
citizens  of  this  city. 

I  have  shown  you  that  an  illuminating  gas — possessing  ten  times  the 
strength  and  efficienty  of  producer  gas,  and  three  times  the  strength 
and  efficiency  of  either  the  "  Loomis-Mixed  "  or  the  best  "  uncarbu- 
retted  "  gas  made,  is  being  sold  to-day  at  a  much  less  cost  to  the  con- 
sumer than  the  price  named  in  this  ordinance,  or  lower  than  any  price 
at  which  it  is  possible  to  manufacture  and  distribute  this  so-called 
"  fuel-gas." 

This  is  so  to-day.,  and  we  are  just  entering  upon  the  highway  lead- 
ing to  a  revolution,  or  still  more  radical  change  in  the  use  of  fuel  for 
domestic  purposes,  wfyich  will  be  consummated  whenever  our  citizens 
fully  realize  this  fact  and  more  generally  adopt  its  use. 

This  change  will  come  through  the  introduction  of  improved  appli- 
ances and  reduction  in  price. 

And  our  ability  to  reduce  the  price  will  depend  upon  increased  con- 
sumption, for  the  greater  the  consumption  which  can  be  obtained  per 
mile  of  main  under  a  single  management,  the  less  will  be  the  cost  of 
production  and  delivery. 

These  expressed  views  are  not  alone  entertained  by  myself,  but  are 
conclusions  based  upon  the  opinions  and  experiences  of  some  of  the 
most  advanced  thinkers  and  brightest  minds  in  the  profession. 

Charles  W.  Shepard,  the  celebrated  chemist,  of  Charleston,  S.  C, 
having  been  called  upon  to  report  to  the  City  Council  of  that  city, 
upon  the  comparative  values  of  coal  and  water  gas  for  heating  pur- 
poses, reported,  under  date  of  July  24,  1880,  as  follows: 


102 


"  It  remains  to  be  proven  that  water  gas  is  cheaper  than  coal  gas. 

"The  claim  of  the  advocates  of  water  gas  rests  mainly  on  their  assertions 
that  it  can  be  produced  at  a  much  lower  cost  than  coal  gas.  The  cost  must 
chiefly  depend  upon  the  prices  of  anthracite  coal  and  naphtha,  which  until 
recently  were  sold  at  such  low  rates,  that  in  the  cities  near  the  coal  centers 
there  appeared  to  be  some  ground  for  the  assertion;  but  when,  'this  spring, 
the  prices  of  these  articles  had  somewhat  recovered  to  what  may  be  regarded 
as  their  legitimate  value,  we  find  the  Municipal  Gas  Light  Companv  of  New 
York  (the  most  prominent '  Tessie  da  Motay  '  concern  in  the  country)  actually 
demanding  $2.25  per  thousand,  notwithstanding  their  former  boast  that  thev 
vwmld  always  be  fully  recompensed  with  $1.50. 

"It  has  been  shown  that  the  manufacture  of  -voter  gas  is  necessarily  at- 
tended with  a  very  considerably  greater  -waste  of  energy  than  is  iyivolvcd 
in  the  production  of  coal  gas.  That  o?ie  found  of  coal  in  the  products  of 
the  coal  gas  process  affords  two  and  a  half  times  as  much  potential 
energy — heat  units — as  the  same  amount  of  coal  converted  into  water  gas, 
and  that  one.  foot  of  coal  gas  rvould  generate  more  than  txvice  the  heat  of  one 
cubic  foot  of  water  gas." 

(i.  Earnest  Stevenson,  the  distinguished  English  engineer  and  man- 
ager of  the  Peterborough  Works,  in  a  communication  published  in  a 
recent  number  of  the  London  Journal  of  Gas  Lighting,  discussing  an 
improved  apparatus  for  making  water  gas,  recently  invented  by  Herr 
*  Julius  Von  Quaglio,  says  : 

••  If  water  gas  be  compared  with  coal  gas  as  a  heating  agent,  it  will  be 
seen  that  it  possesses  a  heat  value  of  from  but  one-third  to  one-half  that  of 
the  latter,  and,  therefore,  unless  it  can  be  supplied  at  a  mere  nominal  cost,  it 
will  not  replace  coal  gas  in  domestic  heating. 

"Indeed,  it  is  probable  theft  the  large  proportion  of  carbonic  oxide  present 
in  the  gas  would  prove  an  insurmountable  obstacle  to  its  introduction  into 
dwelling  houses  for  either  lighting  or  heating  purposes,  as  a  very  slight 
leakage  of  the  gas  in  the  rooms  of  a  house  would  be  fatal  in  its  effects  upon 
the  inmates." 

The  following  editorial,  which  recently  appeared  in  one  of  the  lead- 
ing journals  of  this  country,  is  worthy  of  consideration  in  this  con- 
nection : 

"George  Westinghouse,  Jr.,  of  Pittsburg,  is  beyond  doubt  a  remarkao.e 
man,  and  can  always  be  counted  on  to  give  freely  of  his  time,  energy,  and 
money  for  the  development  of  any  project  that  has  enlisted  his  attention. 
While  other  '  enthusiasts  '  were  shrieking  loudly  over  what  was  wanted,  and 
were  very  glib  in  their  invitations  to  capitalists  to  lead  them  into  the  promised 
land  of  fuel  gas,  Mr.  Westinghouse  went  quietly  ahead,  through  the  agency 
of  the  Fuel  Gas,  Electric,  and  Engineering  Company,  in  a  practical  way,  to 


103 


devise  methods  of  manufacturing  and  distributing  a  fuel  gas  that  should  find 
favor  with  the  people  because  of  its  value  and  cheapness.  No  stinl  of  ap- 
paratus or  capital  interfered  with  the  operations  of  the  company's  engine*  rs, 
and  the  latter  were  finally  forced  to  the  conclusion  that  the  solution  of  the 
problem,  at  least  in  the  near  future,  was  not  for  them. 

"Now,  Mr.  Westinghouse  is  also  given  to  saying  just  what  he  believes,  and 
to  speaking  so  that  those  in  his  vicinity  can  hear  him  quite  distinctly. 
Hence,  when  the  New  York  Sun,  a  few  weeks  ago,  gave  editorial  utterances 
to  the  fact  that  Mr.  Westinghouse  had  made  valuable  discoveries  in  the  fuel 
gas  held,  that  gentleman  promptly  forwarded  the  Sun  a  communication  in 
which  he  made  clear  to  our  minds  that  he  had  at  least  solved  the  problem, 
The  pith  of  the  Westinghouse  letter  is  this:  A  company  with  which  I  am 
connected  has  devoted  about  three  years  to  the  heating  gas  problem. 

"The  investigations  have  been  carried  sufficiently  far  to  show  that  a  nexv 
process  for  the  manufacture  of  gas  is  not  needed  to  bring  its  use  for  heat- 
ing purposes  within  the  reach  of  many.  He  follows  this  up  by  remarking 
that  the  proper  way  to  obtain  success  is  '  in  the  development  of  appliances  for 
burning  gas  economically.' " 

In  view  of  the  world-wide  reputation  of  this  gentleman,  and  the 
distinguished  services  which  he  has  rendered  the  industry  referred  to, 
we  think  it  but  proper  to  here  give  the  text  of  the  letter : 

Pittsburg,  October  24,  1889. 

"Sir: — Your  editorial  notice  concerning  the  fuel  gas  problem,  in  which 
you  give  me  credit  for  a  very  valuable  discovery,  prompts  me  to  ask  for  some 
of  your  valuable  space. 

"A  company  with  which  I  am  connected — The  Fuel  Gas  and  Electric  En- 
gineer Company,  limited — has  devoted  about  three  years  to  the  heating  gas 
problem.    The  investigations  have  been  carried  sufficiently  far  to  show  that 

A    NEW    PROCESS   FOR  THE   MANUFACTURE  OF  GAS   IS   NOT  NEEDED 

to  bring  its  use  for  heating  purposes  within  the  reach  of  the  many.  Instead 
of  the  energies  of  the  company  referred  to  having  been  devoted  wholly  to 
processes  for  the  manufacture  of  gas,  the  greatest  attention  has  been  paid  to 
the  developments  of  appliances  for  the  use  of  gas.  and  already  many  devices 
have  been  perfected  having  such  efficiency  that  their  use  in  connection  with 
ordinary  illuminating  gas  will,  when  taking  into  consideration  the  saving  in 
labor,  dust,  and  dirt,  prove  economical  as  compared  with  coal. 

••  In  the  near  future,  when  the  illuminating  gas  companies  make  it  a  busi- 
ness to  introduce  economical  devices  for  the  burning  of  gas,  it  may  be  ex- 
pected that  the  citizens  of  New  York  and  other  large  cities  will  use  gas  very 
largely  for  cooking  and  other  domestic  purposes. 

"  There  is  a  simple  device  for  the  heating  of  water  that  ought  to  be  in  every 
household.  By  lighting  a  gas  jet  and  turning  on  the  water  at  the  same  time, 
water  is  boiled  in  about  50  seconds,  and  will  run  continuously  at  the  boiling 


104 


point  at  the  rate  of  ten  gallons,  with  a  consumption  of  about  50  cubic  feet  of 
gas  per  hour. 

"  There  are  roasting  devices  wherein  the  radiant  heat  of  the  gas  is  reflected 
upon  the  meats  to  be  roasted,  and  the  result  is  a  saving  of  from  ten  to  fifteen 
per  cent  in  the  weight  of  the  meat,  which  is  lost  by  the  present  method. 

"  Heated  air  prefers  the  top  of  the  room,  and  this  leads  to  the  consumption 
of  a  large  amount  of  fuel  in  order  to  get  a  small  amount  of  the  heat  upon  the 
floor,  where  it  is  most  needed.  A  European  invention  is  so  designed  and  ar- 
ranged that  about  fifty  per  cent  of  the  heat  is  reflected  upon  the  floor,  so  that 
at  a  distance  of  ten  or  twenty  feet  from  one  of  those  contrivances  set  in  an 
ordinary  fire-place  the  heat  can  be  readily  noticed  upon  the  floor. 

"  Not  only  is  the  heat  reflected  upon  the  floor,  but  the  heat  in  the  product 
of  combustion  is  utilized  in  warming  the  air  of  the  room,  which  is  put  in 
circulation.  So  economical  is  this  stove  that  about  85  per  cent  of  the  entire 
heat  units  contained  in  the  gas  are  made  available,  as  against  ten  per  cent 
from  coal  grate  fires.  In  all  bed-rooms  and  for  heating  in  moderately  cool 
weather,  stoves  of  this  character  from  a  sanitary  point  of  view  would  be  worth 
their  weight  in  gold,  for  one  minute  after  lighting  the  gas  jets  the  reflected 
heat  may  be  felt  upon  the  floor. 

"  In  Europe,  where  a  very  careful  investigation  has  been  made  in  the  inter- 
ests of  the  company  referred  to,  innumerable  devices  were  found  of  more  or 
less  merit,  and  which  were  being  largely  introduced  because  of  the  economi- 
cal results  among  the  people  of  this  country.  It  is  known  to  a  fraction  of  a  foot 
how  many  cubic  feet  of  gas  are  needed  to  broil  a  steak,  to  roast  a  pound  of 
beef,  to  cook  a  bunch  of  asparagus,  and  to  boil  a  cabbage. 

"  So  soon  as  the  people  of  New  York  and  other  large  cities  understand 
what  has  been  done,  and  are  able  to  secure  the  necessary  appliances,  they  will 
believe  that  the 

GAS   AGE  HAS   REALLY  COME. 

"  The  present  cost  of  manufactured  gas  is  largely  due  to  the  great  percent- 
age of  leakage,  and  the  comparatively  small  quantity  of  gas  transmitted  for 
an  average  of  twenty  hours  per  day. 

••  When  a  large  quantity  of  gas  is  used  for  heating  during  all  hours, 

THERE   WILL   BE  NO   SPECIAL  NEED   FOR    A   BETTER    PROCESS    OF  MANU- 
FACTURING GAS  THAN   THE  PRESENT, 

for  the  greatlv  increased  consumption  will  lessen  the  price,  and  that,  in  con- 
nection with  the  economical  appliances,  will  bring  what  is  truly  a  greal  lux- 
ury within  the  reach  of  all  classes.  However,  the  importance  of  the  manu- 
facture of  a  cheap  fuel  gas  is  more  fully  recognized  to-day  than  ever  before, 
and  there  are  hundreds  of  gas  engineers  to-day  working  on  the  problem,  and 
there  is  everv  reason  to  expect  that  most  excellent  results  will  follow  such 
persistent  labors. 

"The  work  begun  three  years  ago  on  this  subject  is  still  being  followed  by 
people  in  my  interests,  though  it  is  made  of  secondary  importance  at  the 
preseni  time,  the  first  importance  being  given  to  the  development  of  appliances 
for  burning  coal  gas  economically. 

".George  Westinghouse,  Jr.*' 


105 


Much  time  and  money  have  already  been  spent  by  the  Cincinnati 
Company  in  efforts  to  introduce  and  make  the  Cincinnati  public  fa- 
miliar with  many  of  the  appliances  to  which  Mr.  Westinghouse  refers ; 
the  most  important  of  which  is  the  "  Bunsen-burner  "  attachment  for 
the  production  of  a  mixture  which  is  composed  of  one  part  of  gas 
and  from  live  to  seven  parts  of  air,  thus  furnishing  a  gas  which  has 
been  increased  in  bulk  six-fold,  giving  little  or  no  light,  but  by  com- 
bining with  the  oxygen  at  the  point  of  combustion,  producing  one  of 
the  most  intense  heating  gases  known  to  science,  and  thus  relieving 
the  consumer  from  the  cost  and  annoyance  of  introducing  and  main- 
taining two  sets  of  service  meters,  etc.,  enabling  him,  as  it  were,  to 
but  turn  a  stop-cock  and  draw  from  a  common  reservoir  either  char- 
acter of  gas  desired. 

In  the  recently  issued  report  of  the  Massachussets  Gas  and  Electric 
Commission,  we  find  the  following  suggestive  recommendation : 

"Although  there  are  enthusiasts  who  are  apparently  very  confident  that 
some  process  will  be  found  for  making  1  fuel  gas,'  no  effort  should  be  relaxed 
by  existing  gas  companies  to  increase  their  output  of  gas  and  its  use  for  heat- 
ing as  well  as  illuminating-  purposes, 

"  Many  believe  that  illuminating  gas  may  be  used  to  better  advantage  for 
domestic  purposes,  owing  to  its  greater  heating  qualities  and  the  convenience 
of  having  but  one  source  of  supply. " 

Lewis  T.  Wright,  one  of  the  most  distinguished  scientists  and  en- 
gineers of  England,  has  contributed  a  paper  to  the  British  Associa- 
tion, republished  in  the  Scientific  American,  in  which  he  says : 

"  Tbis  subject  is  one  that  is  now  being  very  busily  canvassed  in  this  coun- 
try, and  is  often  written  about  with  more  or  less  intelligence,  and  more  or  less 
deviation  from  the  facts — both  theoretical  and  practical — which  should  be  ob- 
served and  treated  as  factors  of  great  importance  in  our  estimate  of  its  com- 
mercial importance. 

"The  time  has  come  when  this  subject  should  be  treated  upon  rational 
grounds,  cleared  of  all  imaginary  factors  supplied  so  fully  by  sanguine  minds. 

"Of  coal  gas,  which  is  of  higher  calorific  value  than  any  other  gaseous 
fuel  likely  in  these  times  to  become  a  commercial  product,  there  are  in  many 
quarters  most  extraordinary  misconceptions  afloat. 

"These  misconceptions  are  either  founded  on  a  deep  ignorance  of  the 
economies  of  the  coal  gas  industry,  or  are  due  to  the  statements  of  persons 
who  are  powerfully  biased  by  prejudices  concerning  existing  institutions. 

"  If  the  fuel  of  the  future  is  to  be  a  gaseous  one,  then  there  appears  to  be 
Utile  in  favor  of  water  gas,  so  much  wanted,  but  so  little  applied. 


106 


"  Generator  gas  would  seem  to  be  beyond  hope,  and  almost  beyond  dis- 
cussion. 

"Inventors  who  are  striving  to  improve  '\ie  methods  of  the  manufacture 
of  gaseous  fuel  for  such  purposes  had  far  better  employ  their  genius  in  dis- 
covering  how  great  manufacturing  works  can  be  carried  on  without  capital 
and  intelligent  supervision." 

In  the  most  recently  issued  publication  upon  this  subject,  written 
by  Alex.  C.  Humphreys,  engineer  of  several  water-gas  companies,  and 
originally  read  before  the  British  Association  for  the  Advancement  of 
Science,  just  one  year  ago,  we  find  the  following,  under  the  head  of 

"  FUEL  WATER  GAS. 

"Thus  far  we  have  been  considering  illuminating  (carburetted)  water  gas. 
But  little  has  been  done  in  America  with  fuel  (uncarburetted)  water  gas.  As 
before  mentioned,  the  experience  of  supplying  such  a  gas  to  consumers  at  ^o 
cents  per  thousand  was  tried  in  Yonkers,  New  York,  the  '  Strong '  process 
being  used.  This  did  not  prove  a  commercial  success  for  a  number  of 
reasons. 

"T.  S.  C.  Lowe  (the  inventor  of  the  Lowe  process)  also  made  attempts  in 
the  same  direction,  at  Lynn.  Massachusetts,  and  Troy,  New  York.  At  Troy, 
especially,  very  serious  trouble  was  experienced  by  reason  of  the  gas  being 
odorless;  a  number  of  people  were  overpowered  by  the  gas,  and  a  few  were 
killed. 

"It  can  be  assumed  that  a  straight  fuel  water  gas  (odorless)  has  been 
demonstrated  to  be  unfitted  for  general  distribution.  Quite  a  number  of  small 
plants  have  been  erected  for  the  manufacture  of  this  gas  for  use  in  the  arts. 
For  some  special  manufacturing  purposes,  it  has  proved  eminently  suitable." 

Mr.  T.  F.  Rowland,  one  of  the  most  distinguished  mechanical  en- 
gineers of  America,  and  at  present  proprietor  and  engineer  of  the 
Continental  Iron  Works  of  Pennsylvania,  has  summed  up  the  question 
of  gaseous  fuel  for  domestic  purposes  in  a  few  words,  which  express 
my  own  views  so  fully  that  I  quote  them  here.     He  says  : 

"  Some  two  or  three  years  ago,  I  was  taken  with  the  disease  of  believing 
that  the  time  was  on  hand  when  coal  would  cease  to  be  visible,  except  at  the 
Avorks  of  large  companies  whose  business  it  would  be  to  furnish  gaseous  fuel 
to  the  community  at  a  far  less  cost  than  was  formerly  paid  for  solid  fuel. 
A  series  of  experiments  worked  a  radical  cure  in  my  case,  and  proved  to  my 
entire  satisfaction  that  coal,  and  not  gas,  will  be  the  fuel,  save  in  cases  of 
people  who  will  have  gas  regardless  of  its  economies,  and  then  they  will  he- 
most  economically  served  by  buying  g(zs  of  the  highest  illuminating  poiver, 
for  water  and  generator  gases  are  too  feeble  and  deficient  in  heating  power 
to  bear  the  cost  of  transportation  and  the  expenses  incident  to  a  sort  of  re- 


107 


tail  consumption,  which  the  sale  of  heating  gases  for  household  purposes 
would  be." 

Mr.  McMillen,  who  has  probably  bestowed  more  study  and  com- 
municated more  valuable  information  upon  this  subject  than  any  other 
man  in  the  country,  when  accused  of  being  a  crank  upon  the  subject 
of  heating  gases,  said  at  the  recent  meeting  of  the  Western  Gas  As- 
sociation : 

"I  think  that  Loomis,  Clark,  Lowe,  and  a  few  more  of  us,  will  be  able  to 
stand  the  appellation  of  '  cranks/ 

"  I  believe  that  if  the  Cincinnati  Gas  Company  to-day  had  their  apparatus 
ready,  and  if  the  people  with  one  accord  would  agree  to  burn  gas  for  fuel  pur- 
poses, they  could  make  it  and  sell  it  cheap  enough  so  tbat  consumers  could 
afford  to  use  it,  and  it  would  be  all  coal  gas,  too. 

"I  am  not  an  advocate  of  producer  gas,  nor  water  gas,  nor  mixed  gases,  nor 
any  other  gas,  except  as  to  locality. 

"There  are  places  where  producer  gas  would  be  best,  as  in  a  rolling  mill; 
in  other  places,  perhaps,  water  gas.         Cincinnati  it  is  coal  gas." 

WHO  HE  REPRESENTS. 

And  now,  gentlemen,  as  a  representative  of  those  who  have  in- 
vested their  savings  in  the  Gas  Company,  permit  me  to  say  that  from 
the  time  John  Town — in  September,  1827 — called  the  attention  of  our 
city  authorities  to  the  practicability  of  supplying  gas ;  for  a  continuous 
period  of  fifteen  years,  the  city  authorities  made  every  effort  in  their 
power  to  secure  the  establishment  of  gas  works,  freely  offering  the 
^city  credit,  and  other  equally  valuable  inducements,  to  local  capital- 
ists without  avail,  until  finally,  in  1841,  John  F.  Conover  offered  to 
assume  the  entire  responsibility,  and,  in  accordance  with  the  terms 
and  conditions  prescribed  by  the  ordinance  of  June  16,  1841,  under- 
took the  construction  of  the  works. 

The  attendant  expenses  proving  greater  than  first  anticipated,  he 
soon  found  himself  embarrassed  for  want  of  funds,  and  after  several 
fruitless  efforts  to  obtain  a  mortgage  loan,  was  compelled  to  dispose 
of  one-half  his  interest  to  John  H.  Caldwell  for  a  very  inadequate 
consideration. 

For  many  years  the  original  founders  of  the  enterprise  received  no 
return  from  their  investments ;  but  gradually,  as  the  population  in- 
creased, the  business  became  profitable  enough  to  attract  local  capi- 
tal ;  until  now,  through  continuously  honest,  economical  and  conserv- 
ative management,  it  has  grown  to  be  regarded  as  one  of  the  few  in- 


108 


stitutions  in  which  the  savings  of  our  people  can  be  regarded  as  secure, 
coupled  with  a  reasonable  assurance  of  five  per  cent  on  their  invest- 
ments. 

Had  the  controllers  of  this  industry,  at  any  time  during  the  past 
forty  years,  foiled  in  any  particular  to  comply  with  every  detail  of  either 
their  moral  or  contract  obligations,  refused  to  enlarge  their  works  or 
extend  their  mains  in  order  that  every  citizen  throughout  our  widely 
scattered  territory  might  be  promptly  and  efficiently  served  upon  the 
same  terms,  or  had  the  price  charged  for  gas  been  other  than  that 
named  by  the  city  representatives  themselves,  or  higher  than  that 
charged  in  other  cities  similarly  situated,  there  might  be  some  show  of 
reason  for  entertaining  a  proposition  of  this  character. 

But,  considering  that  there  is  no  company  in  the  world  that  has 
been  more  generous  in  the  way  of  public  charities,  more  liberal 
in  the  accommodation  and  care  of  its  patrons,  or  more  enterprising  in 
making  provision  for  public  wants  through  the  construction  of  one  of 
the  finest  and  best  managed  works  in  the  world,  in  order  that  our 
city  may  never  in  the  future  be  subjected  to  the  dangers  of  being  de- 
prived of  gas  through  floods  or  other  unavoidable  accidents,  why 
should  you,  by  favorable  action  upon  this  ordinance,  sanction  a  con- 
spiracy for  the  destruction  of  your  own  citizens'  property  interests  in 
order  that  a  gang  of  foreign  and  unknown  "  raiders"  may  fatten  upon 
the  spoils,  and  destroy  an  industry  which 

IS   PURELY   A   LOCAL   MANUFACTURING  COMPANY, 

owned  and  operated  by  these  citizens;  but,  in  every  other  respect,  as 
absolutely  under  municipal  control  as  are  your  own  city  water-works, 
for,  under  the  act  of  March  n,  1853,  the  City  Council — the  direct  repre- 
sentatives of  the  people — are  empowered  to  name  the  price  which  we 
are  compelled  to  accept  as  a  just  equivalent  for  the  services  rendered, 
providing  only  that  the  price  thus  named  shall  give  to  the  company  a 
fair  and  reasonable  return  upon  the  capital  necessarily  invested  in  the 
undertaking. 

And  thus  a  reasonable  return  upon  the  capital  invested  becomes  the 
standard  by  which  the  price  always  has  been  and  always  will  be  fixed 
to  the  consumer. 

And  herein  lies  the  interest  of  another  large  class  of  our  citizens 
whom  I  represent — the  consumers  of  gas— for  on  the  already  invested 
capital  of  six  and  a  half  million  dollars,  the  law  allows  and  justice  de- 
mands that  investors  receive  a  fair  and  reasonable  return. 

If,  through  your  action,  this  industry  should  be  burdened  with  du- 


109 


plicate  works,  duplicate  mains,  and  necessarily  a  duplication  of  capi- 
tal, it  must  be  apparent  to  the  dullest  intellect  that  this  means  the  pay- 
ment by  the  gas  consumers  often  per  cent  on  the  amount  thus  in- 
vested, or  the  additional  sum  of  $650,000  per  year,  for  identically  the 
same  service — for  the  special  counsel  of  the  city,  Messrs.  Matthews 
and  Gholson,  have  expressly  advised  the  municipal  authorities  that 
when  they  indicate  a  price  it  must  be  such  a  one  as  will  give  a  fair 
and  reasonable  return  upon  the  capital  invested — and  if  the  city  au- 
thorities themselves,  through  their  own  acts,  compel  such  an  increase, 
they  will  forever  afterward  be  barred  from  claiming  such  increase  as 
unnecessary  and  excessive. 

Thus  closing  the  doors  forever  against  any  other  or  further  reduc- 
tion in  the  price  of  gas,  and  probably  laying  the  foundation  for  a  very 
decided  increase  in  the  future,  through  a  possible  combination  or  con- 
solidation, such  as  that  which  has  been  effected  under  like  conditions 
in  New  York,  Brooklyn,  Baltimore,  and  Chicago  — where,  though  the 
volume  delivered  is  four  times  that  distributed  in  Cincinnati,  and  con- 
sequently the  comparative  cost  of  production  materially  less — prices 
have  been  established  fully  twenty-five  per  cent  higher  than  in  this 
city. 

But,  gentlemen,  there  is  still  another  large  class  of  your  constituents 
whose  interests  I  may  fairly  claim  to  represent — the  tax-payers  of  our 
city — whose  burdens  will  undoubtedly  be  increased  or  diminished 
through  your  favorable  or  unfavorable  action  upon  the  ordinance  now 
before  you. 

For  remember  that  if  the  privilege  sought  is  granted,  it  means,  if  it 
means  any  thing,  that  the  promoters  of  this  scheme  shall  be  granted 
the  unrestricted  privilege  of  ripping  up  and  destroying  nearly  fifty 
miles  of  newly-laid  granite  and  asphalt  paved  streets,  in  the  improve- 
ment of  which  our  citizens  have,  and  will  in  the  near  future,  be  called 
upon  to  pay  over  four  million  dollars  ;  the  trenching  of  nearly  one 
hundred  miles  of  bowldered  thoroughfares,  fully  one  hundred  and 
fifty  miles  of  macadamized  roadways,  and  the  cutting  across  from  side 
to  side  of  twenty-five  thousand  trenches,  coupled  with  all  the  attend- 
ant and  inevitable  interruption  and  inconvenience  to  the  business  in- 
terests of  our  city ;  leaving  our  streets  in  the  condition  Mr.  Fanning 
describes  the  streets  of  Rochester  were  left  after  being  raided  as  these 
gentlemen  propose  to  raid  Cincinnati : 

"The  fact  is,  the  people  of  Rochester  have  heen  most  gloriously  humbug- 


110 


ged  by  this  man  Scott,  and  one  is  justified  in  making  statements  that  are  true 
to  prevent  others  being  dealt  with  likewise. 

"  I  hear  and  believe  much  more  than  I  can  prove. 

"  I  never  saw  the  streets  of  Rochester  in  such  a  condition  since  I  came  here, 
forty-six  years  ago,  as  they  were  all  last  winter,  and  this  spring  they  are  de- 
plorable indeed." 

Or  the  condition  in  which  the  Indianapolis  Journal  says  the  streets 
of  that  city  were  left  after  having  been  subjected  to  a  similar  raiding 

process : 

••  Nothing  that  can  now  be  said  will  change  the  facts  of  the  history  of  the 
transaction  in  the  least,  and  these  facts  are  by  no  means  creditable  to  any  one 
connected  with  the  transaction.  The  admitted  or  established  facts  are  brieflv 
these:  The  men  engaged  in  the  enterprise  were  a  set  of  adventurers  who  go 
from  city  to  city,  making  money  for  themselves  by  threatening  competition 
and  compelling  a  purchase  by  established  companies. 

"  They  brought  no  money  with  them,  and  whatever  they  carried  away  was 
made  off  of  some  one  belonging  to  the  city.  The  organization  was  a  skele- 
ton, no  money  having  been  paid  upon  the  stock,  and  zealous  defenders  of 
the  enterprise  had  no  interest  in  it,  except  the  stock  given  them  for  their  ser- 
vices in  roping  others  into  it.  The  streets  of  the  city  -were  torn  up  and  teft, 
and  are  to-day  in  a  dangerous,  damaged  and  unrepaired  condition.  The  re- 
duction made  in  the  price  of  gas  is  no  greater  than  the  reduction  made  in 
other  years,  before  the  new  company  was  organized.  The  new  company  was 
the  one  to  maintain  the  price  at  $2.00,  and  insisted  upon  an  agreement  with 
the  old  company  in  the  maintenance  of  a  new  monopoly. 

''The  sale  was  made  in  the  face  of  the  bond  given  to  the  city  that  it  would 
not  be  made,  and  the  leaders  in  this  honest  enterprise  are  now  repeating  them- 
selves in  other  cities. 

"  Some  people  may  think  these  are  square  business  transactions,  we  do  not 
think  so. 

"  The  whole  transaction  is  a  strongly  marked  case  of  Peter  Funk,  from  be- 
ginning to  end,  and  the  only  misfortune  is  that  the  city  allowed  itself  to  be 
dragooned  into  giving  it  vitality.' 

And  now,  gentlemen,  in. conclusion,  permit  me  to  say  that  we  are 
to-day  selling  gas  at  less  than  the  cost  of  production  and  delivery  but 
a  few  years  ago.  The  ability  to  reduce  and  the  actual  reductions  in 
prices  charged  have  invariably  kept  pace  with  an  increased  delivery. 

In  1870,  when  our  population  was  216,000  and  our  deliveries  but 
four  hundred  million  cubic  feet,  we  were  receiving  $2.25,  which  was 
then  considered  a  low  price ;  since  which  there  have  been  two  succes- 
sive reductions.    To-day,  we  have  a  population  of  300,000,  a  con- 


Ill 


sumption  of  nine  hundred  million  cubic  feet,  and  are  selling  gas  at  an 
average  of  but  $1.08  per  thousand. 

That  is,  every  increase  of  one  thousand  in  population,  and  propor- 
tionate increase  in  consumption,  has  enabled  us  to  make  a  reduction 
of        cents  per  1,000  cubic  feet. 

If  this  increase  of  population  continues  in  the  same  ratio,  and  its 
use  for  domestic  fuel  purposes  becomes  more  general,  it  will  certainly 
be  but  a  few  years  until  the  reductions  in  price  will  make  it  available 
for  all  ordinary  purposes,  and  the  correctness  of  my  statements  and 
the  wisdom  of  my  advice  will  be  universally  indorsed. 


Mr.  Matthews  then  desired  to  ask  one  question. 

M.  Didn't  General  Hickenlooper  have  to  reduce  his  illuminating  gas  to 
make  fuel  gas  out  of  it  ? 

H.  Our  gas  has  three  times  the  heating  power  of  your  gas  without  any  re- 
duction. 

M.  Don't  say  "  my  gas;''  we  have  no  gas. 

//.  I  think  that's  true;  I  never  supposed  vou  had.  But  you  have  been  do- 
ing so  much  talking  about  gas,  that  I  don't  know  any  better  way  of  designat- 
ing it. 

Mr.  Baker  then  wanted  to  be  heard  for  just  a  few  minutes. 

B.  I  have  listened  with  much  edification  to  the  General  for  just  one  hour 
and  forty-five  minutes,  so  let  me  have  a  few  minutes.  Every  body  knows  that 
the  Cincinnati  Gas  Company's  plant  is  capitalized  at  six  and  a  half  millions, 
and  isn't  worth  two.  Every  body  knows  that  the  cost  of  gas  to  the  Cincin- 
nati Gas  Company  is  not  one  cent.  Every  body  knows  that  when  he  pays  his 
gas  bill  that  it's  all  fat.  Every  body  knows  that  the  Gas  Company  'pavs  10 
per  cent  and  lays  up  a  reserve  to  use  in  stopping  opposition.  Every  bodv 
knows  that  the  street  lighting  pays  20  per  cent.  Every  body  knows  that  the 
Solicitor  has  a  suit  against  them  for  a  large  sum.  I  have  listened  to  his  abuse 
of  the  Bellevue  Company,  and  know  that  it's  because  he  owns  the  Newport 
Company.  Your  gas  lamps  are  little  yellow  blotches,  and  the  gas  is  not 
tested.  That  Company  was  never  bonded  for  $200,000,  and  hasn't  the  Loomis 
but  the  Springer  process,  and  we  furnish  gas  three  times  as  good  as  yours.  T 
represent  the  Glendale  Company;  why  have  you  not  abused  that  company  ? 

//.    It  never  pretended  to  be  a  fuel  gas  company. 

B.  It's  not  fair  for  you  to  abuse  that  little  company  in  Kentucky  that's 
minding  its  own  busineas.  If  it  is  true  that  you  could  afford  to  sell  gas  at 
half  the  price  you  are  now  charging,  if  you  could  sell  the  same  quantity  thej 


112 


sell  in  Chicago  or  Brooklyn,  reduce  your  price  one-half  and  you  will  sell  three 
times  as  much. 

//.  There  is  not  the  population  here  to  consume  so  large  a  yolume.  We 
have  reduced  as  rapidly  a*s  the  population  increased. 

B.  One  manufacturer  would  take  as  much  as  twenty  blocks  of  people, 
and  certainly  you  have  the  manufacturers  in  Cincinnati. 

//.  I  have  already  shown  you  that  it  is  not,  and  never  will  he,  possible  to 
produce  a  gas  that  can  be  profitably  used  to  generate  steam.  The  gas  we  now 
deliver  can  be  profitably  used  for  domestic,  but  not  for  manufacturing,  pur- 
poses. 

B.  The  trouble  is  that  the  city  is  dying  of  dry  rot.  Every  little  city  about 
Cincinnati  is  going  ahead  and  having  a  fuel  gas  plant.  Your  statement  about 
Akron  is  ridiculous.  At  East  Liverpool  they  are  putting  in  a  fuel  gas  plant, 
to  be  used  in  the  burning  of  crockery.  Every  body  knows  that  manufactur- 
ers are  leaving  here  simply  because  you  wont  sell  them  gas  for  fuel. 

Chairman  Spiegel  interrupted  the  burst  of  eloquence  by  an  inquiry 
as  to  whether  Mr.  Baker  was  for  or  against  the  ordinance  now  under 
discussion. 

B.  Against  it  certainly  I  am,  but  let  my  company  have  a  chance  to  obtain 
that  franchise. 

There  is  a  gold  mine  in  it  for  the  grantee. 

But  stop  the  big  dividends  that  are  being  made  by  the  Cincinnati  Gas  Com- 
pany with  stock  selling  at  $210.    A  pretty  good  thing  that. 

//.  If  "  fuel  gas"  is  is  a  gold  mine,  why  did  you  so  promptly  change  your 
own  fuel  gas  company  in  Bellevue  into  an  illuminating  gas  company  ? 

B.  Because  we  could  not  get  the  magnesia  cones  in  this  country.  We  had 
to  send  to  Germany  for  them,  and  they  were  too  expensive,  and  we  had  to 
abandon  their  use.    We  now  make  an  illuminating  gas  by  adding  oil. 

H.  What  becomes  of  your  "  fuel  gas  "  theory,  you  now  admit  that  even  be- 
fore vou  changed  you  were  trying  to  illuminate  ? 

B.  I  wonder,  gentlemen,  that  you  are  not  ashamed  of  the  little  yellow 
blotches  vou  have  in  this  city.  I  wonder  the  gas  company  is  not  ashamed  to 
supply  such  little  yellow  lamps.  I  wonder  they  are  not  ashamed  to  steal  from 
the  city  by  charging  for  something  they  do  not  furnish. 

H.  It  is  better  to  do  that  than  to  stock  and  bond  a  $10,000  investment  for 
$200,000,  and  attempt  to  unload  it  upon  innocent  people. 

B.    What  do  you  mean  ?    Explain  yourself. 

H.    I  mean  just  what  I  say,  and  refer  to  the  Bellevue  Company. 
B.    How  do  you  know  ? 

//.    Oh,  I  got  possession  of  one  of  your  bonds  and  had  it  photographed. 
B.    Do  you  know  where  that  bond  is  now  ? 
H.    No,  I  do  not. 

B.  Well,  it's  in  my  safe,  and  now  let  me  say  that  the  company  never 
issued  bonds  for  any  such  sum  as  you  say.  Why  do  you  continue  to  assail 
that  little  company  over  in  Kentucky  ? 


113 

//.  I  have  alluded  to  that  company  simply  to  show  that  where  you  your- 
selves establish  a  "  fuel  gas  "  plant  it  did  not  prove  either  profitable  or  prac- 
ticable, and  that  you  found  it  necessary  to  change  it  into  an  illuminating  gas 
plant;  and  I  now  repeat  that  it  was  stocked  and  bonded  in  the  sum  named 
by  an  incorporated  company  which,  under  the  laws  of  Kentucky,  has  neither 
personal  nor  corporate  responsibility. 

B.  No  gas  company  in  a  little  town  of  three  thousand  inhabitants  can 
afford  to  be  exclusively  a  fuel  gas  company. 

The  fact  is  that  we  make  our  money  over  there  out  of  furnishing  water; 
ours  is  a  water  and  gas  as  well  as  a  water  gas  company.  I  tell  you,  gentle- 
men, that  the  franchise  that  they  ask  you  to  give  to  this  Queen  City  Com- 
pany is  worth  a  hat  full  of  money.  If  vou  give  it  to  them,  let  me  make  a 
prediction  that  in  less  than  a  vear  General  Hickenlooper  will  own  it. 

Mr.  Matthews.  I  always  supposed  that  competition  was  a  good  thing; 
it  is  true  that  one  company  could,  if  they  would,  supply  gas  cheaper  than 
two,  but  do  they  ? 

The  same  arguments  apply  to  iniquitious  trusts.  The  trouble  is  that  one 
-does  not  do  what  it  could;  it  takes  advantage  of  its  monopoly.  I  agree  that 
the  legislative  control  over  your  company  has  been  a  good  thing  and  some 
protection  to  our  people. 

77.  Can  you  point  to  a  single  city  in  the  United  States  where  reductions 
in  price  of  gas  have  been  as  frequent  and  rapid  as  they  have  been  in  this 
city  where  there  is  no  competition  ?  In  the  city  of  Brooklyn,  where  they 
send  out  three  times  the  volume  of  gas  we  do,  and  where  there  are  seven 
companies  in  operation,  the  price  is  still  $1.60  per  1,000. 

Mr.  Jordan.  Why  not  amend  this  ordinance  by  granting  to  any  and  all 
companies  franchises  to  dispose  of  fuel  gas  in  this  city.  Will  Messrs. 
"Matthews  and  Baker  want  the  franchise  then  ? 

Mr.  Matthews.    Of  course  not. 

Mr.  Jordan.  That  will  be  competition,  just  what  vou  have  been  crying 
for;  it  is  a  monopoly  that  you  are  hunting  aftej\  Mr.  Baker  wants  to  pay 
for  it  and  Mr.  Matthews  wants  it  for  nothing. 

On  motion  of  Mr.  Mullen  the  Committee  adjourned  until  Tuesday, 
at  2  o'clock. 


The  Committee  on  Light  met  according  to  appointment,  with 
Messrs.  McDonough,  Schweninger,  Schlotman,  Heyn,  Berger,  Mul- 
len and  Spiegel. 

Mr.  Spiegel.  Any  one  present  who  has  any  interest  in  the  matter,  or  de- 
sires to  address  the  Committee  on  the  subject,  will  now  proceed. 

Air.  Mullen.    I  was  going  to  make  a  long  speech,  but  T  don't  believe  I 


114 


will.  Under  Rule  19,  this  ordinance  ought  to  have  been  reported  back  to 
Council  at  our  last  meeting.    I,  therefore,  now  make  a  motion  to  this  effect. 

Mr.  Heyn.  This  Queen  City  Gas  Company  came  into  our  Board  asking 
for  a  franchise,  and  could  give  no  information  as  to  who  was  back  of  it,  or 
why  the  price  was  raised  from  fifteen  to  fifty  cents.  I  move  that  this  ordi- 
nance be  referred  back  to  Council  with  the  recommendation  that  it  be  in- 
definitely postponed. 

Mr.  Berger.    I  second  that  motion. 

Mr.  McDonOUgh.  This  is  a  very  peculiar  question.  I  would  favor  ex- 
tending the  old  ordinance,  and  inserting  fifty  cents  instead  of  fifteen,  and  then 
compelling  them  to  go  on  and  pipe  natural  gas  to  the  city  before  trenching  the 

streets. 

Mr.  Heyn.  If  they  wanted  to  bring  natural  gas  from  the  Indiana  fields,  I 
would  favor  it,  but  it  looks  to  me  as  if  they  only  wanted  a  franchise  to'seil  to 

somebody. 

Mr.  Spiegel.  Mr.  Mullen's  motion  is  to  refer  back  to  Council  without 
recommendation.  The  clerk  will  call  the  roll.  Messrs.  Mullen  and  Schwen- 
inger voted  aye,  and  Messrs.  Spiegel,  Heyn,  Berger,  and  McDonough 
voted  no. 

The  motion  of  Mr.  Heyn  to  refer  back  to  Council  with  a  recom- 
mendation that  the  ordinance  be  indefinitely  postponed,  was  put  and. 
carried  by  the  following  vote  : 

Ayes.    Messrs.  Heyn,  Schlotman,  Berger,  Spiegel,  and  McDonough. 
Nays.    Messrs.  Mullen  and  Schweininger. 

Mr.  Mullen.    I  serve  notice  that  I  intend  to  present  a  minority  report. 
Mr.  Spiegel.    Of  course,  you  are  at  liberty  to  do  so. 

On  motion  the  Committee  then  adjourned. 


The  special  meeting  of  Council  had  already  convened,  awaiting  the 
report  of  the  Committee.  The  following  communication  was  read 
and  received : 

Cincinnati,  Ohio,  September  5,  1S90. 
"To  the  Honorable  Board  of  Council  of  Cincinnati : 

"Whereas,  Louis  Reemelin.  apparently  the  attorney  of  a  Fuel  Gas  Company, 
in  his  official  capacity  as  President  B.  P.  I.,  seeks,  with  his  associates,  Mont- 
gomery and  Donham,  of  the  B.  P.  I.,  without  regard  for  rights  of  the  citizens, 
or  the  financial  interests  of  the  city,  to  give  his  client,  said  Fuel  Gas  Com- 
pany, the  franchise  of  the  city,  without  remuneration;  and  whereas,  Chas.  W. 
Baker,  an  attorney  at  law,  in  behalf  of  his  client,  some  other  Fuel  Company, 
offers  $100,000,  and  2%  per  cent  upon  its  gross  earnings,  for  the  same  fran- 
chise; and  whereas,  George  B.  Kerper,  a  member  of  the  B.  P.  I.,  caused  the 


115 


passage  by  the  "Board  of  a  resolution  instructing  the  City  Solicitor  to  draft 
and  submit  to  the  Board  a  general  ordinance  to  govern  the  introduction  of 
natural  and  fuel  gas  by  competitive  bidding,  and  for  the  protection  of  the  citi- 
zens and  city;  and  whereas,  the  League  of  Liberty  and  Citizens*  Rights  are 
satisfied  from  past  experience  that  corporations,  or  individuals  seeking  fran- 
chises from  the  city,  never  intended  to  fulfill  their  obligations  when  making 
application  for  such  privileges,  as  instance,  some  street  railroads  have  abso- 
lutely refused  to  perform  their  obligations  to  the  city.  Therefore,  be  it  Re- 
solved. That  the  League  of  Liberty  and  Citizens'  Rights,  in  behalf  of  its  mem- 
bers and  the  citizens  of  Cincinnati,  request  the  Honorable  Board  of  Council, 
under  no  consideration,  to  pass  an  ordinance  granting  franchises  for  natural 
gas,  or  for  other  purposes,  unless  it  embraces  a  clause  w  herein  a  corporation 
or  individual  granted  a  franchise  fails  to  perform  their  obligations  shall  forfeit 
said  franchise  and  improvement,  and  the  Mayor  shall  summarily  take  pos- 
session, without  recourse  to  law,  or  damage  to  him  or  city. 

"  Most  respectfully, 

'•J.  R.  Wolf, 
"  Cn  as.  Penter. 
"  Ed.  Rixd. 

Committee  of  Bund  of  Liberty  and  Citizens'  Rights."' 

Mr.  Spiegel  then  submitted,  from  the  Committee,  a  majority  and  minority 
report. 

The  majority  report  was  to  indefiditely  postpone  the  amended  ordinance 
of  the  Queen  City  Natural  and  Fuel  Gas  Company,  signed  by  Messrs.  Spie- 
gel, Heyn,  Schlotman,  Berger,  Thos.  McDonough — five. 

The  minority  report  was:  Return  of  the  ordinance  without  recommenda- 
tion, signed  by  Messrs.  Mullen  and  Schweininger — two. 

The  City  Solicitor  had  been  before  the  Committee,  and  decided  that  the 
ordinance,  as  amended,  was  an  entirely  new  ordinance  as  passed  by  the  B.  B.  I., 
and  now  pending;  one  not  at  all  dependent  upon  the  life  of  the  original  or- 
dinance, passed  September  13,  1S89;  therefore  was  legal. 

On  motion,  both  reports  were  received. 

Upon  the  question  to  engross.  Mr.  Cohen  offered  two  amendments,  one  to 
require  400  heats  units  per  cubic  foot,  and  one  to  require  the  Queen  City 
Company  to  put  up  $100,000  for  the  franchise  they  ask. 

Mr.  Dienst  moved  to  refer  back  to  the  Committee  on  Light  to  report  next 
meeting. 

Mr.  Mullen  moved  to  amend  by  adopting  amendments  to  report  next 
regular  meeting. 

Mr.  Wuest  observed  that  the  regular  meeting  took  precedence. 

Mr.  Cohen  said  he  had  not  much  to  say.  but  his  object  was  to  secure  the 
valuable  offer  made  by  Mr.  Baker  (of  $100,000)  to  the  B.  P.  I.,  and  wanted 
his  amendments  adopted. 

Mr.  Dienst  wanted  the  reference,  and  spoke  strongly  for  it.  He  wanted 
more  liaht  on  the  subject,  and  advised  them  to  make  haste  slowly. 

Mr.  Winkler  was  for  the  reference— most  decidedly— and  then  charged 


116 


Cohen  with  sinister  motives.  In  a  word,  that  his  motive  was  a  covert  offer 
of  the  Queen  City  Company. 

Cohen  called  him  to  order,  and  disclaimed  any  such  "cannister"  intention. 

Mr.  Mullen  thought  there  had  been  discussion  and  investigation  enough, 
and  pressed  the  adoption  of  the  amendments  and  engrossment  of  the  ordi- 
nance. 

Mr.  Spiegel  argued  for  the  reference,  because  those  amendments  had  not 
been  dreamt  of  by  the  Committee  on  Light,  and  it  was  proper  to  consider 
the  ordinance  in  light  of  those  amendments;  besides  there  is  pending  a  gen- 
eral competitive  ordinance,  which  will  also,  no  doubt,  find  its  way  to  the  Com- 
mittee. 

The  reference  of  the  first  amendment  was  ordered.    Yeas,  20;  nays,  31. 

On  the  question  of  the  second  amendment,  Mr.  Winkler  desired  to  hear 
from  the  City  Solicitor  as  to  the  law  about  new  gas  companies — because  this 
ordinance  would  have  to  go  to  the  people. 

City  Solicitor  llorstman  said  that  this  was  for  fuel  gas,  not  for  illuminating 
•4a-:  therefore  it  will  not  have  to  be  submitted  to  the  popular  will. 

Then  Mr.  Cohen  and  Mr.  Wuest  played  a  game  of  base  ball  about  the  pro- 
duction of  natural  gas.  fuel  gas.  and  all  other  kind  of  gases,  to  which  tl\e  Board 
paid  no  attention  other  than  to  talk  aloud. 

Mike  Mullen  also  took  a  hand  at  defining  the  different  kind  of  gases,  but  let 
himself  out  by  saying  that  all  such  questions  had  been  ably  discussed  before 
Committee  and  by  the  press. 

Witzenbacher  advised  to  make  haste  slowly,  because  other  companies  may 
come  forward  with  big  offers  for  the  franchise. 

Mr.  Winkler  desired  to  know  what  guarantee  Mr.  Cohen  had  that  the 
Queen  City  Company  would  accept  his  amendment  about  the  $100,000.  but 
none  was  forthcoming.  The  second  amendment  was  adopted.  Yeas,  34; 
nays,  14. 

Mr.  Abbihl  moved  to  refer  all  ordinances  and  amendments  to  the  Commit- 
tee on  Law  and  Contracts.     This  was  lost. 
Mr.  Spiegel  moved  to  adjourn.  Lost. 

Mr.  Witzenbacher  moved  to  lav  over  to  next  regular  meeting.  Lost:  yeas, 
21 ;  nays,  30. 

Mr.  Dienst  moved  to  adjourn.    Lost:  yeas.  20;  nays,  32. 

Then  Winkler  begged  of  them  not  to  engross  the  ordinance  as  amended, 
but  lay  it  over  for  consideration.  "  Do  not  apply  gag  law.  so  as  to  prevent 
other  amendments.     Others  may  come  in  making  still  better  offers  to  the  city. 

Do  not  engross  it." 

But  thev  engrossed  it  in  spite  of  Winkler's  expostulations — by  a  vote  of 
yeas,  34;  nays,  19. 


117 


[From  Commercial  Gazette,  September  13,  1890.] 

INDEFINITELY  POSTPONED. 


THAT'S  WHAT  COUNCIL  DID  WITH 


Reemelin's  Boodle  Ordinance. 


*  *  *  *  *  *  * 

This  brought  the  business  of  the  meeting  down  to  the  first  item  on  the  cal- 
endar— the  Queen  City  Natural  Gas  and  Fuel  Company's  ordinance. 

Lewy  Bernard  had  been  busy  up  to  this  time  in  the  committee-room  con- 
versing with  members  steered  in  there  by  Mike  Mullen.  And  Mike  himself 
created  a  scene  by  shouting  his  vote  upon  o^ie  of  the  preceding  ordinances 
from  the  committee-room.  The  Clerk  would  not  record  it,  upon  which  Mr. 
Mullen  demanded  to  know  if  votes  had  not  been  taken  before  in  that  way. 
The  Chair  corrected  this  by  informing  Mr.  Mullen  that  if  the  Clerk  had  ever 
done  so  it  was  without  authority. 

The  ordinance  over  which  so  much  had  been  written  and  said  was  read  the 
third  time.  Lewy  Bernard  was  very  busy  during  the  reading.  Attorney  Mat- 
thews followed  the  Clerk's  reading  with  a  duplicate  of  the  ordinance,  to  see 
that  nothing  was  omitted  by  the  Clerk. 

Mr.  Winkler  was  recognized  by  the  Chairman,  and  said  that  enough  had 
been  said  on  the  ordinance,  both  in  the  Board  and  out  of  it,  and  he  therefore 
moved  to  indefinitely  postpone  the  ordinance. 

Mike  Mullen  was  on  his  feet  in  an  instant.  "I  just  expected  that  motion, 
Mr.  Chairman,  and  I  think  it  an  outrage.    I  think" — 

He  was  cut  off  bv  Mr.  Wuest,  who  arose  to  a  point  of  order,  namely,  that 
the  motion  before  the  house  was  not  debatable. 

The  Chair.    The  point  of  order  is  well  taken. 

Mr.  Mullen.    It  is  an  infernal  outrage;  and  I  just  wish  tc  say — 

The  Chair.  You  are  out  of  order,  Mr.  Mullen;  the  question  is  not  debat- 
able.   The  Clerk  will  call  the  roll  on  the  motion  to  indefinitely  postpone. 

The  Clerk  was  very  particular  in  his  performance  of  this  duty.  He  called 
each  name  on  the  roll  in  a  distinct  tone  of  voice,  and  paused  after  each  name, 
before  calling  the  next,  to  give  the  member  no  chance  of  escape:  and  he  ob- 
served that  method  every  time  he  was  compelled  to  call  the  roll. 

Observe  the  record  on  the  first  call:   For  indefinite  postponement — Messrs. 


118 


Abbihl,  Beard,  Dewald,  Dienst,  Dowd,  Fink,  Harig,  Heyn,  Hoerschmeyer, 
Kaufman,  King,  Kistner,  Legner,  Ludlow,  McCarthy,  MeDonough  (Thos.), 
Paul,  Schlotmann,  Schuler,  Spiegel,  Westerkamp,  Wilson,  Winkler,  Witzen- 
backer,  Wuest,  Yoast — 27.  Against  indefinite  postponement — Messrs.  Arm- 
strong, Bollmann,  Clearv,  Cohen,  Doll,  Dougherty.  Flannagan,  Goldblatt, 
Kenny,  Kuehnert,  Lamott,  MeDonough,  McGill,  Mullen,  Muller,  Reilley, 
Roedter,  Schatz,  Schmith,  Schrauder,  Schweninger,  Stacey,  Talbott,  Terhune, 
Weber,  President  Bader — 26. 

Before  the  result  was  announced,  MeDonough  (John)  asked  to  change  his 
vote  from  no  to  yes,  and  McGill,  Muller,  and  Goldblatt,  and  Mr.  President 
speedily  followed,  making  the  final  record  on  indefinite  postponement— yeas, 
32  ;  nays,  21 . 

Mr.  Mullen  arose  to  a  question  of  privilege,  and  stood  in  his  place  for  a 
few  seconds  silent  and  dazed.  Something  had  happened  quite  out  of  his  cal- 
culation, hopes,  and  peculiar  line  of  work  with  Lewy  Bernard.  He  desired 
"  to  state  right  here"  that  an  outrage  had  been  done  the  public,  because  time 
had  not  been  givgn  to  discuss  that  ordinance,  and  he  desired  the  press  at  the 
reporters'  table  to  understand  and  know  that  the  ordinance  had  not  been  suf- 
ficiently discussed,  and  that  all  who  voted  for  indefinite  postponement  were 
guilty  of  an  outrage. 

Mr.  Dienst  called  the  gentleman  to  order. 

Chair.    State  your  point  of  order. 

Mr.  Dienst.  He  is  abusing  his  privilege.  He  is  not  speaking  for  himself, 
but  abusing  every  gentleman  on  the  floor  who  exercised  his  right  to  vote  ac- 
cording to  his  judgment. 

Half  a  dozen  members  sprang  to  their  feet  and  raised  a  little  old  Bedlam  for 
a  few  moments.  Mullen  kept  his  feet  and  roared  back  at  Dienst,  but  that 
resolute,  ready,  and  forcible  speaker,  maintaining  his  ground,  and  his  right  to 
be  heard  that  no  one,  nor  vet  any  combination,  on  that  floor  could  take  away 
from  him  until  he  exhausted  every  shred  of  it. 

Order  was  at  length  restored,  and  then  Mr.  Dienst  called  upon  the  Chair  to 
protect  the  members  from  abuse  by  denunciation  in  the  exercise  of  their  in- 
disputable rights. 

Mr.  Kistner  changed  the  entire  tone  by  moving  to  reconsider  the  vote  by 
the  ordinance  was  indefinitely  postponed. 

Mr.  Wuest  seconded  the  motion,  and  hoped  that  it  would  be  voted  down. 
Some  one  moved  to  adjourn.    Lost — yeas,  20;  nays,  32. 
Kistner  pressed  his  motion  to  reconsider. 

Then  Mike  Mullen  made  an  appeal  to  eyery  member  present  to  carefully 
consider  the  question  before  voting,  and  Mike  said  some  other  things  not 
quite  as  pleasing  as  an  appeal  to  their  cool  judgment,  and  was  sneered  and 
laughed  at  derisively. 

Then  followed  the  vote  to  reconsider.    The  motion  was  lost: 

Yeas — Messrs.  Armstrong,  Clearv,  Cohen,  Dougherty,  Flannagan,  Kenny, 
Kuehnert,  Lamott,  Mullen,  Reilley,  Roedter,  Schrauder,  Schweninger,  Tal- 
bott, Terhune,  Weber — 16, 

Navs — Messrs.  Abbihl,  Beard,  Berber,  Bollman,  Dewald,  D!enst,  Doll, 
Doud,  Fink,  Goldblatt,  Harig,  Heyn,  Hoerstmeyer,  KaufFmann,  King,  Kist- 


11!) 


ner,  Legner,  Ludlow,  McCarthy,  McDotiough  (John),  McDonough  (Thote.), 
McGill,  Muller,  Patterson,  Paul,  Schath,  Schlotmann,  Schmith,  Schueler, 
Spiegel,  Westerkamp,  Wilson,  Winkler,  Witzenbacker,  Wuest,  Yoast.  Presi- 
Bader — 37, 


THUS  ENDS  THE  OFFICIAL  RECORD 

— its  private  history  has  not  yet  been  written — of  one  of  the  most 
shameless  and  barefaced  attempts  ever  made  by  persons  without  per- 
sonal or  pecuniary  responsibility,  to  procure  a  franchise  of  inestima- 
ble value,  to  be  placed  upon  the  market  for  sale  as  a  raiding  and 
blackmailing  instrument. 

That  the  public  fully  appreciated  and  understood  its  purpose,  is 
be^t  illustrated  by  quoting  sentiments  expressed  by  the  city  press, 
which  united  in  condemnation  with  a  unanimity  never  before  equaled 
in  the  history  of  municipal  legislation. 


QUEEN  CITY  GAS  COMPANY. 

The  B.  P.  I.  by  a  vote  of  three  to  two  yesterday  approved  and  transmitted 
to  Council  the  amended  ordinance  granting  an  extension  of  one  year  to  the 
Queen  City  Gas  Company  of  their  franchise  to  lay  pipes  for  natural  ga>.  and 
increasing  the  price  from  fifteen  to  fifty  cents  per  1,000  feet. 

Xo  little  surprise  is  expressed  at  what  is  characterized  as  the  unexpected 
action  of  the  Board  in  regard  to  this  matter.  The  matter  is  one  of  no  little 
importance  to  the  citizens  of  the  city,  and  is  certainly  entitled  to  the  most  de- 
liberate consideration. 

Whatever  subserves  the  public  interest  is  not  liable  to  suffer  from  the  sun- 
light of  public  discussion,  but  is  rather  improved  and  strengthened  by  it.  It 
is  not  too  much  to  expect  that  Council  will  pass  upon  the  matter  understand- 
ing! v.  — Editorial,  Enquirer ,  August  21st. 


SUSPICIOUS  HASTE. 

Last  year  the  so-called  Queen  City  Natural  Gas  and  Fuel  Companv  went 
to  the  Board  of  Public  Affairs  for  a  franchise.  It  wanted  permission  to  tear 
up  the  streets  of  this  city  for  the  alleged  purpose  of  supplying  natural  gas  from 
the  Indiana  fields.  The  opinion  was  widespread  then  that  the  manifest  ob- 
stacles made  the  experiment  of  questionable  practicability.  And  while  there 
was  a  universal  desire  that  the  city  should  have  the  benefit  of  natural  gas,  if 
it  could  be  obtained,  the  public  was  disposed  to  demand  that  the  supply  should 


120 


be  assured  before  our  streets  were  upheaved.  The  company  did  not  want  any 
restrictions  or  conditions  precedent.  This  looked  suspicious  and  justified  a 
doubt  as  to  the  fair  purposes  of  the  originators  of  the  scheme.  They  finally, 
however,  accepted  an  ordinance  providing  that  pipes  should  be  laid  to  the  city 
limits  furnishing  a  supply  of  20,000,000  cubic  feet  of  natural  gas  per  day  be- 
fore the  streets  were  touched.  They  were  given  a  year  in  which  to  do  this. 
Eleven  months  have  passed  and  nothing  has  been  done.  The  franchise  ha& 
bee"  hawked  about  the  streets,  but  the  conditions  imposed  have  rendered  it 
valueless  to  the  speculators.  New  developments  tend  to  confirm  the  popular 
opinion  that  the  scheme  has  the  character  of  a  job,  and  that  those  who  are 
back  of  it  would  not  hesitate  to  rip  up  and  ruin  our  streets  to  accomplish  their 
ends.  If  there  had  been  any  intention  of  piping  natural  gas  to  Cincinnati, 
why  were  no  steps  taken  after  permission  to  lay  mains  was  granted  ?  If  there 
was  no  such  object,  what  was  the  purpose,  if  not  to  get  a  marketable  priv- 
ilege ?  Keeping  these  facts  in  mind,  what  construction  is  to  be  put  upon  yes- 
terday's proceedings  in  the  Board  of  Public  Improvements?  An  amendment 
to  the  ordinance  of  September,  1889,  which  amounts  to  a  new  ordinance,  was 
proposed  by  Mr.  Reemelin,  granting  the  Queen  City  Natural  Gas  and  Fuel 
Company  the  right  to  construct  mains  for  supplying  natural  or  fuel  gas  upon 
certain  conditions  acceptable  to  the  board.  Certainly  this  proposal  is  of  di- 
rect and  immense  concern  to  the  people  of  this  city,  who  want  to  be  sure  of 
the  public  benefit  before  giving  away  a  franchise  involving  the  tearing  up  of 
streets  that  have  cost  the  city  $5,000,000.  One  would  suppose  that  it  was  a 
matter  for  investigation  and  careful  action.  But  the  ordinance  was  pushed 
through  with  indecent  haste,  against  the  protests  of  Messrs.  Kerper  and 
Ellison.  The  suggestion  that  a  little  time  should  be  allowed  for  considering 
its  provisions  was  utterly  ignored.  It  was  hurried  over  to  Council,  which 
body,  it  was  evidently  supposed,  would  act  at  once.  Does  any  body  entertain 
for  a  moment  the  idea  that  this  was  not  a  set-up  job  ?  Can  the  public  have 
any  faith  in  the  good  intentions  of  men  who  refuse  opportunity  for  investiga- 
tion, seek  to  stifle  discussion,  sw^eep  aside  all  protests  against  dealing  in  the 
dark  with  public  interests,  and  "  railroad  through "  an  ordinance  ?  Legiti- 
mate enterprises  have  nothing  to  fear  from  investigation.  Jobbery  has  much 
'to  fear.  — Editorial.  Times-Star,  August  21st. 


STRANGE  THINGS  ARE  GOING  ON. 

Strange  things  are  going  on  in  our  reform  Board  of  Public  Improvements, 
When  you  see  a  man  running  along  the  streets  after  midnight  with  a  bag 
over  his  ^shoulders,  you  are  inclined  to  take  him  for  a  burglar.  The  pre- 
sumption may  be  false,  but  the  suspicion  is  not  entirely  unfounded. 

Yesterday  a  motion  granting  a  valuable  franchise  to  the  Queen  City  Nat- 
ural Gas  and  Fuel  Company  was  suddenly  sprung  on  the  Board.  Contrary 
to  all  rules  and  usage,  the  motion  wras  not  referred  to  a  Committee,  but  im- 
mediately adopted  by  three  Democratic  members  and  sent  to  the  City 
Council. 


121 


Mr.  Kerper,  who,  in  conjunction  with  Mr.  Ellison,  has  thus  far  guarded  the 
interests  of  the  people  in  the  B.  P.  I.,  expressed  his  surprise  at  this  haste,  and 
put  several  perplexing  questions.  In  answer  Mr.  Reemelin  raised  his  hands 
to  heaven,  protesting  that  they  were  clean.  Why  did  Mr.  Reemelin  defend 
himself?  Did  any  body  accuse  him  ?  But  Mr.  Reemelin  has  lifted  up  his 
hands  to  heaven,  and  that  settles  it. 

As  far  as  the  Queen  City  Natural  Gas  and  Fuel  Company  is  concerned,  the 
reader  will  derive  much  valuable  information  from  the  following  state  of 
affairs:  That  company  bound  itself  a  year  ago  to  furnish  natural  gas  at  the 
cheap  rate  of  fifteen  cents  a  thousand  cubic  feet,  whereupon  it  received  a 
valuable  franchise  from  the  city.  This  franchise  expires  on  the  9th  of  Sep- 
tember next.  As  a  matter,  of  course,  the  company  has  never  dreamed  to  ful- 
fill its  part  of  the  contract.  It  comes  now  and  demands  an  extension  of  the 
privilege  for  another  year,  and  promises  in  return  to  furnish  artificial  gas  at 
the  rate  of  fifty  cents  per  1.000  cubic  feet. 

This  is  also  very  cheap,  but  we  advise  our  fellow-citizens  not  to  run  into 
an  excess  of  joy  at  this  fine  prospect,  for  it  will  not  be  realized.  The  pub- 
lic will  be  fooled  a  second  time.  The  company  wants  nothing  but  a  fran- 
chise, a  franchise  to  turn  into  cash.  But  the  members  of  the  B.  P.  I.  who 
voted  for  the  franchise  have  a  clear  conscience.  Mr.  Reemelin  has  lifted  up 
his  pure  hands,  and  that  is  sufficient  proof.  The  other  Democratic  mem- 
bers of  the  Board  who  supported  the  franchise  ought  also  to  have  lifted  up 
their  hands.  The  scene  would  have  been  more  dramatic  and  carried  con- 
viction to  the  most  skeptic  minds. 

— Editorial^  Volksblatt.  August  21s/. 

STILL  HIDING.— THAT  COLORED  GENTLEMAN 
IN  THE  B.  P.  I.  WOOD  PILE.  — MORE  MYSTER- 
IES ABOUT  THAT  QUEEN  CITY  GAS  COM- 
PANY. 

The  question  was  put  to  Attorney  C.  B.  Matthews,  representing  the  Queen 
City  Gas  Co.,  applying  for  an  extension  of  franchise  for  another  year  with  an 
amendment  to  include  artificial  gas: 

"  Who  constitute  the  Queen  City  Gas  Company  ?" 

"Ah,  that  I  can't  tell,  I'm  sure,"  he  replied.  "  You  know  it  is  a  joint  stock 
concern/' 

"  Yes,  but. are  they  Eastern  men  or  local  men  who  are  the  stockholders  ?  " 
"  They  are  local  men,  of  course."' 

"  Well  are  they  the  same. men  who  pushed  through  the  natural  gas  ordi- 
nance, or  new  men  ?  " 

"  It  is  the  same  company.'' 

"  You  were  not  attorney  on  the  former  occasion  ?  " 

"True;  but  before  going  to  Europe,  Harry  Morehead,  who  managed  it  be- 
fore, directed  me  to  attend  to  the  matter.  There  would  have  been  no  applica- 
tion if  the  time  to  which  the  franchise  is  limited  were  not  about  to  expire." 


122 


The  members  of  the  B.  P.  I.  who  hurriedly  passed  the  amended  gas  ordi- 
nance against  Mr.  Kerper's -protest  that  he  wanted  time  to  read  it,  were  sev- 
erally asked  if  they  knew  who  constitute  the  Queen  City  Gas  Company. 
They  answered  as  follows: 

Mr.  Donham — I  don't  know.    I  know  Mr.  Morehead  is  in  it. 

"As  agent  or  principal  ?  " 

"  Well,  I  don't  know." 

Mr.  Montgomery — I  don't  know  any  of  them.  I  never  saw  the  ordinance 
until  Mr.  Matthews  presented  it.  I  voted  to  send  it  to  Council,  where  it  be- 
longs. 

Mr.  Reemelin — Yes,  I  know  some  who  are  in  it,  and  there  is  capital  behind 
it — Cincinnati  capital. 

"  Who  are  some  of  them  ?" 

"That  I  can  not  tell.  It  would  be  a  breach  of  confidence.  That  ordinance 
is  all  right.  They  must  either  have  natural  gas  piped  to  the  city  limits,  or 
have  a  plant  that  will  supply  20,000.000  feet,  before  they  can  lav  mains  in  the 
city,  and  must  supply  five  miles  of  streets  for  one  year  before  they  can  sell  the 
franchise. 

Mr.  Kerper — I  don't  know  who  are  in  the  company.  What  I  object  to  is 
the  passage  of  so  important  an  ordinance  before  I  have  had  time  to  even 
read  it.  — Post,  August  21st. 


THAT  NEW  GAS. 

Everv  body,  save  the  holders  of  the  stock  of  the  Cincinnati  Gas  Light  and 
Coke  Co.,  wishes  we  had  cheaper  gas,  and  nearly  every  body  believes  it  could 
be  furnished  at  about  $1.00  per  thousand  cubic  feet.  That  the  company  has 
a  good  thing  of  it  at  $1.10  i*  very  evident,  when  but  a  single  share  was  on  the 
market  vesterday;  and  that  sold  for  210.  Nevertheless,  few,  if  any,  persons 
think  that  gas,  even  non-illuminating,  can  be  manufactured  and  furnished  to 
Cincinnati  at  50  cents.  Therefore,  the  so-called  "  natural  gas  "  ordinance  of  the 
Queen  City  Natural  and  Fuel  Gas  Co. — which  has  now  become  a  ••manufact- 
ured gas"  ordinance — is  a  tit  subject  for  the  most  careful  scrutiny  of  all  hon- 
est citizens.  Last  Friday  Council  suddenly  adjourned*,  through  the  efforts  of 
certain  knowing  ones,  to  Wednesdav  of  this  week,  which  is  not  the  regular 
meeting  day.  Nobody  gave  any  reason  for  this.  Yesterdav.  the  B.  P.  I. — 
that  is,  Messrs.  Reemelin,  Donham  and  Montgomery — hustled  through  the 
Board  at  an  astonishingly  swift  gait,  the  amendment  to  the  "  natural  gas  " 
ordinance,  changing  it  to  a  manufactured  gas  ordinance,  and  raising  the  price 
from  15  to  50  cents,  and  giving  but  the  flimsiest  excuse  for  the  haste.  Two 
hours  later,  Mr.  Reemelin  was  on  hand  at  the  Council  chamber  with  the 
amended  ordinance,  and  a  number  of  able  statesmen  took  charge  of  it.  It  had 
its  first  reading,  and,  in  the  hands  of  its  friends,  speedily  went  to  the  Commit- 
tee on  Light,  to  be  reported,  not  at  the  "next  regular"  meeting,  but  the 
"  next "  meeting,  whatever  day  that  is  fixed  for. 

Whether  correctly  or  incorrectly,  the  suspicion  is  held  by  many,  that  once 


123 


•secured,  the  new  company's  franchise  will  de  for  sale;  General  T Iickenlooper 
says  it  lias  already  been  peddled  about  in  the  East.  It  is  suspected,  further, 
that  the  Cincinnati  Gas  Light  and  Coke  Co.  may  consider  itself  compelled  to 
buy  it.  The  point  then  will  be,  in  that  contingency,  who  will  ultimately  pay 
this  additional  expenditure — General  Hickenlooper's  stockholders  or  the  con- 
sumers? Whatever  may  be  the  interest  of  others  in  the  scheme,  the  interest 
of  some  of  the  able  Councilmen  is  separate  and  apart,  and  most  beautiful  to 
behold. 

The  Enquirer  sounds  a  timely  note  of  warning  when  it  says:  ''The  matter 
is  one  of  no  little  importance  to  the  citizens  of  the  city,  and  is  certainly  enti- 
tled to  the  most  deliberate  consideration.  Whatever  subserves  the  public  in- 
terest is  not  liable  to  suffer  from  the  sunlight  of  public  discussion,  but  is  rather 
improved  and  strengthened  by  it.  It  is  not  too  much  to  expect  that  Council 
will  pass  upon  the  matter  understandinglv."   — Editorial,  Post,  August  2\st. 


THE  PROPOSED  NEW  GAS  COMPANY. 

There  is  sound  reason  to  believe  there  is  nothing  honest  at  the  bottom  or 
anywhere  about  the  proposed  new  gas  company,  the  ordinance  authorizing 
which  was  recommended  with  such  unseemly  haste  bv  three  of  the  five  mem- 
bers of  the  Board  of  Public  Improvements,  with  the  prior  understanding  that 
it  would  be  rushed  through  Council  under  a  suspension  of  the  rules. 

This  is  a  matter  in  which  the  people  of  Cincinnati  are  greatly  interested. 
Time,  therefore,  should  have  been  given  for  consideration.  But  that  was  pre- 
cisely what  the  promoters  of  the  scheme  did  not  want.  If  there  was  noth- 
ing corrupt  about  it,  time  would  have  been  given  for  consideration.  The 
haste  in  the  matter  stamps  fraud  upon  the  whole  business.  Manifestly  the 
purpose  is  not  to  afford  competition  in  the  manufacture  of  gas,  but  to  spec- 
ulate in  a  franchise  for  which  the  city  obtains  nothing. 

Near  a  year  ago  an  ordinance  was  passed  authorizing  the  distribution  of 
natural  gas  through  the  streets.  That  was  carefully  considered  and  prop- 
erly guarded.  The  Commercial  Gazette  supported  it  because  it  believed  it 
would  be  a  good  thing  for  the  city.  But  the  speculative  feature  was  taken 
out  of  it  by  a  careful  provision  that  the  price  to  consumers  should  be  fif- 
teen cents  per  thousand  cubic  fed,  and  that  the  streets  should  not  be  broken 
until  ample  pipes  were  laid  from  the  gas-fields  to  the  corporate  limits  of 
the  city.  Furthermore,  it  was  provided  that  this  should  be  done  within  a 
year,  or  the  ordinance  would  lapse.  Its  life  is  within  a  few  weeks  of  its 
end.  Not  a  mile  of  pipe  has  been  laid  from  the  gas-fields.  The  capitalists 
who  were  in  the  scheme  abandoned  it,  and  the  enterprise  is  dead.  There  is 
no  natural  gas  for  Cincinnati. 

But  now  that  ordinance  is  brought  forward  amended.  It  is  applied  to  a 
company  that  is  authorized  to  manufacture  and  distribute  fuel  gas  at  fifty 
cents  per  thousand.  This  price,  too.  is  limited  to  five  years.  After  that  the 
price  might  be  advanced.  The  ordinance  is  framed  for  the  purpose  of  spec- 
ulating in  the  franchise  and  not  for  the  purpose  of  helping  Cincinnati.  It 
is  unquestionably  a  fraudulent  scheme. 


124 


If  there  were  any  doubt  about  this,  it  is  only  necessary  to  notice  the  meth- 
ods that  were  employed  to  pass  it  through  the  Board  of  Public  Improve- 
ments. That  performance  is  sufficient  to  condemn  it.  Mr.  Reemelin,  in  at- 
tempting to  answer  the  questions  of  his  Democratic  associate,  Mr.  Kerper, 
talked  about  clean  hands.  Bosh.  There  were  six  dirty  hands  in  the  busi- 
ness, and  Tharp  can  not  pump  water  fast  enough  to  make  them  clean. 

Now  mark  the  proceedings.  Three  members  of  the  Board,  viz.,  Reeme- 
lin. Donham  and  Montgomery,  fixed  this  up  undoubtedly  among  themselves. 
We  were  advised  of  this  secret  scheme  and  were  on  the  lookout  for  it.  It 
was  introduced  into  the  Board  and  rushed  through  against  the  protest  of 
Messrs.  Kerper  and  Ellison.  There  never  was  a  more  infamous  performance 
than  that. 

The  Council  was  to  meet  in  special,  not  regular,  session  the  same  afternoon, 
and  it  was  expected  the  rules  would  he  suspended  and  the  ordinance  passed. 
That,  however,  did  not  work.  The  ordinance  did  not  pass.  Will  the  Coun- 
cil disgrace  itself  by  becoming  a  party  to  this  infamously  corrupt  job?  It 
is  to  be  hoped  it  will  not. 

This  is  not  a  tight  of  the  Cincinnati  Gas  Company.  It  rises  higher  than 
that.  It  is  a  contest  of  the  people  for  self-protection  against  a  threatening 
combination. 

And  it  is  a  very  serious  matter.  There  are  three  members  of  the  Board 
of  Public  Improvements  capable  of  this  barefaced  performance,  and  these 
have  charge  of  millions  of  the  people's  money.    What  is  to  be  expected  ? 

— Editorial,  Commercial  Gazette,  August  2^th+ 


THE  GAS  QUESTION. 

Owing  to  recent  developments,  it  is  not  to  be  presumed  that  the  City  Coun- 
cil will  adopt  the  ordinance  extending  the  franchise  of  the  Queen  City  Natural 
Gas  and  Fuel  Company  for  another  year.  Even  if  the  members  of  the  City 
Council  should  be  so  rascally  as  to  vote  for  the  ordinance,  there  is  a  law  to 
thwart  them,  which  requires  that  franchises  to  a  new  gas  company  must  be 
submitted  to  a  popular  vote.  Regarding  the  Board  of  Public  Improvements, 
especially  the  three  Democratic  members,  who  voted  for  the  ordinance,  the 
value  of  the  franchise  which  they  propose  to  grant  gratuitously  to  the  Queen 
City  Natural  Gas  Company,  may  be  inferred  from  the  fact  that  another  com- 
pany has  offered  to  pay  for  the  franchise  one  hundred  thousand  dollars,  and 
turn  over  the  city  two  per  cent  of  the  gross  receipts. 

From  this  it  can  be  seen  that  the  franchise  which  the  Board  of  Public  Im- 
provements desires  to  grant  for  nothing  is  of  an  immense  value,  and  that  the 
Queen  City  Natural  Gas  Company  can  well  afford  to  pay  for  the  obtaining 
of  the  franchise.  After  Mr.  Reemelin  has  lifted  up  his  hands  to  heaven  and 
protested  his  innocence,  it  would  be  the  height  of  audacity  to  presume  that  he 
or  his  colleagues  were  in  any  way  interested  personallv  in  the  bestowing  of 
the  franchise.    But  if  the  members  of  the  Board  say  that  they  are  honest,  the 


125 


•citizens  have  a  right  to  consider  them  as  very  stupid  for  throwing  away  so 
valuable  a  franchise. 

The  offer  above  mentioned  was  made  through  Mr.  Charles  Baker,  and  will 
come  up  in  the  Board  of  Public  Improvements  for  discussion.  The  Board,  or 
at  least  a  majority  of  its  members,  have  lost  the  people's  confidence,  and  re- 
quire careful  watching  by  the  citizens,  who  must  take  charge  of  the  matter 
themselves. 

The  question  now  is  :  What  can  the  citizens  fairly  ask  for  the  valuable 
franchise?  Thev  are  offered  a  thousand  cubic  feet  of  gas  at  fifty  cents.  Thai 
is  cheap  enough,  for  at  present  they  must  pay  $1.10.  But  not  every  thing  is 
gas  that  is  called  by  that  name.  Gas  largely  mixed  with  wind,  or  adulterated 
in  some  other  manner,  possesses  an  inadequate  heating  power,  and  might  be 
paid  too  high  at  fifty  cents  a  thousand  cubic  feet.  The  board  must  not  buy 
the  cat  in  the  bag,  but  be  satisfied  that  the  gas  is  of  good  quality.  Otherw  ise, 
the  citizens  might  eventually  discover  that,  like  with  the  promise  of  natural 
gas,  they  got  wind  instead  of  gas. 

After  it  is  proven  that  such  gas  as  the  company  desires  to  furnish  is  really 
in  existence,  and  worth  fifty  cents  a  thousand  cubic  feet,  the  new  company 
must  be  compelled  to  furnish  sufficient  security  for  the  prompt  performance 
of  its  contract  obligations.  For  without  such  security  we  may  find  that  the 
company,  after  paving  the  $100,000,  which  it  promises,  sells  the  franchise  for 
$200,000  or  more.  A  contract  of  five  years  is  of  too  short  a  life.  Five  years 
pass  around  rapidly.  What  can  we  do  if  the  company  after  five  years  raises 
the  price  to  one  dollar  per  thousand  cubic  feet? 

In  our  opinion  the  following  conditions  are  indispensable  to  secure  the  city 
against  any  loss  and  disadvantage  in  granting  the  franchise  : 

One  hundred  thousand  dollars  must  be  paid  for  the  franchise,  two  per  cent 
of  the  gross  recepts  must  be  paid  to  the  City  Treasurer,  a  considerable  secur- 
ity in  cash  must  be  deposited  for  the  strict  performance  of  the  contract, 
which  shall  be  binding  for  ten  years.  After  it  has  been  conclusively  proven 
that  such  gas  as  is  promised  is  really  in  existence  and  of  good  quality,  then  let 
us  have  the  contract  and  break  down  the  present  monopoly.  The  grant  of  the 
franchise  to  the  Queen  City  Natural  Gas  and  Fuel  Company  is  out  of  question. 
Any  member  of  the  City  Council  who  votes  for  the  granting  of  that  franchise 
is,  in  our  opinion,  guilty  of  corruption. — Editorial,  Volksblatt,  Aug.  i^th. 


THE  FUEL  GAS  QUESTION. 

The  public  have  learned  the  purpose  of  the  fuel  gas  ordinance  that  passed 
with  such  unseemly  haste  through  the  Board  of  Public  Improvements  bv  a 
vote  of  three  to  two  and  in  the  face  of  the  protest  of  the  two.  It  was  con- 
cocted outside  of  the  Board  and  rushed  through  by  the  votes,  of  Reemelin, 
Donham,  and  Montgomery.  The  expectation  was  that  it  would  pass  Coun- 
cil the  same  afternoon,  but  it  did  not.  It  struck  some  sort  of  a  snag  and 
Avent  to  the  Committee  on  Light.  Yesterday  the  latter  Committee  met. 
The  proposed  successors  to  the  Queen  City  Gas  Company  were  not  there. 


126 


At  least  their  attorney  was  not  there,  and  the  matter  was  postponed  until- 
one  week  from  next  Monday, 

It  was  a  good  thing  to  turn  on  the  electric  light.  Frauds  undertaken 
against  the  public  can  not  bear  either  natural  or  artificial  light.  There 
never  was  a  more  bare-faced  fraud  than  that  proposed. 

The  original  purpose  of  the  Queen  City  Company  was  honest.  It  was  in- 
tended to  bring  natural  gas  from  the  Indiana  field  and  sell  it  here  to  con- 
sumers at  fifteen  cents  per  thousand  cubic  feet.  This  was  a  liberal  price.  It 
would  have  paid  large  profits  to  the  company  and  been  a  benefit  to  the  citv. 
But  capital  is  timid.  This  is  especially  true  of  Cincinnati  capital.  The 
money  to  lay  the  pipes  ninety-five  miles  from  the  Indiana  field  to  the  cor- 
porate limits,  which  was  a  condition  precedent,  was  not  forthcoming. 
Therefore  the  ordinance  was  about  to  lapse.  Its  life  expires  on  the  13th  of 
September. 

At  this  point  comes  Mr.  Bentlev  Matthews,  attorney,  representing  parties- 
the  public  do  not  know,  and  the  Board  of  Public  Improvements,  or  the  City 
Council,  so  far  as  the  public  are  advised,  do  not  know,  and  proposes  to  re- 
vamp the  Queen  City  Ordinance  and  infuse  new  life  into  it.  The  natural 
gas  feature  was  stricken  out,  and  fuel  gas  substituted;  the  fifteen  cent  limit 
as  the  price  was  changed  to  fifty  cents.  This  extraordinary  proposition  was 
accepted  with  open  arms  by  the  three  members  of  the  Board  of  Public  Im- 
provements. Discussion  was  hardly  permitted,  and  time  for  discussion  was 
refused  by  the  clean-handed  majority.  Infamous  is  a  very  mild  term  to  ap- 
ply to  this  proceeding. 

Next  came  Mr.  C.  W.  Baker  with  a  proposition  to  pay  one  hundred  thou- 
sand dollars  cash  and  two  per  cent  annually  on  gross  receipts  for  the  ordi- 
nance that  it  was  proposed  to  give  to  Mr.  Matthews's  company  for  nothing, 
except  love  and  affection,  and  other  considerations  to  which  the  city  would 
not  be  a  party. 

These  are  the  facts,  and  we  do  not  overstep  the  bounds  of  propriety  in  sav- 
ing that  no  honest  city  official  can  be  a  party  to  the  Queen  City  scheme  un- 
less he  is  a  fool. 

Mr.  Baker's  scheme  is  far  better,  of  course,  but  even  that  should  not  be 
adopted,  for  the  reason  that  fifty  cents  per  thousand  cubic  feet  for  fuel  gas  is 
exorbitant,  and  would  exclude  the  mass  of  consumers  from  its  use.  Natural 
gas  is  supplied  to  consumers  at  six  to  twelve  cents  per  thousand  in  what  are 
called  gas  towns.  What's  the  use  of  talking  about  competing  with  that  with 
fifty  cent  gas  ?  What's  the  use  of  undertaking  to  compete  even  with  coal  at 
$1.50  per  ton,  the  price  at  which  nut  and  slack  Youghiogheny  coal  is  now 
suppled  to  manufacturers  in  this  city. 

Furthermore,  the  Cincinnati  Gas  Company  is  now  supplying  fuel  gas  to 
ever}'  body  who  wants  it  at  equal  to  twenty-one  cents  or  less.  That  is,  illu- 
minating gas  of  one  part  and  atmospheric  air  of  five  parts,  the  air  not  being 
measured,  is  largely  used  for  cooking  purposes  in  this  city.  But  even  this  is 
too  dear  for  steam  purposes. 

It  is  mortifying,  as  it  is  alarming,  that  there  should  be  officials  of  any  kind 
in  any  of  the  city  departments  that  could  be  approached  with  such  a  propo- 
sition as  that  covered  by  the  so-called  Queen  City  gas  ordinance. 

— Editorial,  Commercial-Gazette,  August  2ath. 


127 


THAT  INIQUITOUS  GAS  JUGGLERY. 

The  Council  Committee  on  Light  has  agreed  to  give  a  public  hearing  to 
all  persons  who  desire  to  speak  on  the  amended  Queen  City  Natural  and 
Fuel  Gas  ordinance.  The  Committee  has  taken  a  wise  step.  The  public 
has  denounced  the  action  of  Messrs.  Reemelin,  Donham  and  Montgomery, 
of  the  B.  P.  I.,  who  refused  Messrs.  Kerper  and  Ellison  a  hearing,  as  out- 
rageous, and  as  justly  meriting  the  gravest  suspicion.  Those  Councilmen 
who,  three  hours  after  the  passage  of  the  ordinance  by  the  three  B.  P.  I. 
members,  endeavo'red  to  complete  the  work  by  suspending  the  rules  and 
passing  the  ordinance  instanter,  also  justly  merit  suspicion.  It  is  certain 
these  men  have  not  an  eve  single  to  the  interest  of  the  whole  people. 

Mr.  Reemelin's  excuse  for  his  haste — "  that  the  Cincinnati  Gas  Co.  has  owned 
this  town  long  enough" — will  hardly  justify  his  precipitate  course.  Two 
months  were  given  a  year  ago  to  the  discussion  of  the  Queen  City  Natural  and 
Fuel  Gas  Co.  ordinance,  and  the  results  were  highly  satisfactory.  The  com- 
pany was  granted  a  franchise,  with  reserved  rights  to  the  city,  and  if  a  natural 
gas  had  been  brought  here  at  15c.  the  public  would  have  rejoiced.  But  the  gas 
didn't  come.  Now  the  company  wants  to  amend  its  ordinance  by  eliminat- 
ing the  clause  which  protects  the  city's  rights,  so  as  to  jeopardize  those 
rights,  and  to  charge  the  public  50c.  for  manufactured  fuel  gas,  which  is  en- 
tirely too  high  a  figure.  The  ordinance  in  this  shape  should  never  pass. 
Nor  should  the  B.  P.  I.  and  members  of  Council  be  given  an  opportunity 
to  juggle  for  the  profit  that  may  be  in  the  manipulation.  The  strongest 
electric  light  must  be  turned  on  the  whole  business,  and  on  the  vote  of 
every  member  of  the  B.  P.  I.  and  of  Council. 

— Editorial,  Post,  August  2qtA. 


A  PUBLIC  DISGRACE. 

We  are  relating  no  news  to  our  readers  when  we  tell  them  that  the  Board 
of  Public  Improvements  has  in  every  respect  deceived  the  expectations  of  the 
people,  and  that  those  citizens  who  believed  in  the  honesty  of  the  Demo- 
cratic cry  of  reform  during  the  past  campaign,  have  been  ignominiouslv  duped. 
The  actions  of  the  Board  have  been  a  concatenation  of  the  most  infamous 
iobberies,  through  which  the  most  essential  interests  of  the  people  have  been 
cruelly  and  purposely  injured. 

It  is  known  that  the  Queen  City  Natural  Gas  and  Fuel  Company  prayed 
for  an  extention  of  its  franchise  for  a  term  of  one  year,  although  it  never  had 
acted  in  accordance  with  even  one  of  the  conditions  of  its  franchise  previously. 
All  that  the  company  had  done  was  to  go  peddling  with  its  franchise,  and  as 
it  could  not  find  a  high  enough  bidder  at  the  expiration  of  one  year,  ask  for 
an  extension  of  one  year  more.  It  is  only  necessary  to  remark  that  the  new- 
ordinance  has  been  so  framed  that  the  company  is  not  even  compelled  to  lay 


128 


■gas  pipes  before  the  granted  privilege  takes  effect;  in  other  words,  that  the 
conditions  of  the  new  franchise  are  more  liberal  instead  of  more  severe. 

And  this  most  valuable  advantage  was  granted  by  the  Board  in  the  course 
of  an  hour,  and  transmitted  to  the  Board  of  Councilmen  that  the  action  be 

sanctioned. 

Thereupon,  another  corporation  appeared,  and  proposed  the  following: 
"To  pay  to  the  city  for  the  privilege  alone  the  sum  of  $100,000,  and  to  furnish 
a  bond  of  $200,000  that  the  conditions  of  the  contract  be  conscientiouslv  exe- 
cuted, and  to  revert  to  the  city  treasury  two  per  centum  of  the  gross  receipts. 
And  this  proposition,  so  much  more  advantageous  to  the  citizens,  was  rejected 
by  the  Board  of  Public  Improvements. 

The  Democrat,  Kerper,  who  has  throughout  acted  as  a  man  of  honor,  and 
the  Republican,  Ellison,  voted  for  the  passage  of  an  ordinance  that  had  in  view 
an  acceptance  of  this  proposition,  while  the  three  other  Democratic  members 
opposed,  and  accomplished  its  defeat. 

So  these  three  gentlemen  do  not  desire  that  the  city  receive  $100,000  for  the 
granting  of  a  privilege.  They  prefer  that  it  shall  be  given  away  for  nothing. 
They  do  not  desire  that  assurance  be  given  that  the  contract  be  lived  up  to, 
but  prefer  to  surrender  the  citizens,  bound  hand  and  foot,  to  a  corporation. 

Such  actions  admit  of  only  one  interpretation,  which  is  far  from  compli- 
mentary to  the  members  who  have  supported  it. 

If  the  city  shall  not  receive  the  offered  $100,000,  who  shall  receive  them  ? 
The  answer  is  easily  found.  The  citizens  will  find  it  without  our  giving  it  to 
them.  Now,  we  ask:  Must  the  citizens  patiently  permit  such  treachery? 
Is  it  not  the  duty  of  Governor  Campbell  to  call  to  account  the  three  mem- 
bers of  the  Board  who  have  thus  acted  to  the  detriment  of  the  city's  in- 
terests? 

Without  a  doubt  it  is  his  duty,  but  we  have  not  the  slightest  hope  he  will 
act  in  accordance  with  the  dictates  of  duty.  He  has  already  been  requested 
to  interfere  in  the  Water-works  question,  and  has  promised  to  see  that  jus- 
tice be  done,  but  he  hasn't  made  the  slightest  preparation  to  keep  his  prom- 
ise. But  we  hope  that  the  citizens  will  at  the  polls  properly  reply  to  such 
antics.  Even  now  the  possibility  of  foiling  the  infamous  deed  is  not  cut  off*. 
The  ordinance  which  grants  the  Queen  City  Gas  Company  the  privilege 
above  explained  requires  the  concurrence  of  the  Board  of  Councilmen.  This 
Board  can,  and  must,  prevent  the  consummation  of  this  iniquitous  rob- 
bery. 

We  request  of  the  citizens  of  each  ward  that  they  keep  guard  how  their 
representative  in  Council  acts  in  conjunction  with  this  ordinance.  If  they 
find  members  voting  for  the  ordinance  they  know  what  to  think  of  it;  that 
the  hundred  thousand  dollars  which  the  city  does  not  receive,  have  found 
their  way  into  other  pockets.  In  how  far  the  criminal  courts  will  act,  if  the 
privilege  is  presented  to  the  Queen  City  Gas  Company,  we  will  allow  to  re- 
main a  matter  of  future  conjecture.  But  members  of  Council  who  vote  for 
this  ordinance  may  rest  assured  that,  in  event  of  its  passage,  they  will  be 
branded  for  all  time  to  come.  • 

But  we  warn  members  of  Council.  The  patience  even  of  Cincinnati  citi- 
zens is  limited.    If  they  are  wise  they  will  not  put  it  to  so  extreme  a  test  as 


129 


to  give  the  Queen  City  Gas  Company  a  privilege  which  is  evidently  worth 
millions,  for  their  experience  in  that  event  might  prove  extremely  unpleas- 
ant. —Editorial,  Volksblatt,  Sept.  3,  1890. 


THE  SIX  DIRTY  HANDS 

That  control  the  Board  of  Public  Improvements — the  appointees  of  Gov- 
ernor Campbell,  and  the  representatives  of  the  Democratic  party — or,  to 
speak  correctly,  the  owners  of  those  hands,  viz.,  Reemelin,  Donham  and 
Montgomery,  made  an  extraordinary  exhibition  of  themselves  at  their  office 
in  the  City  Building  yesterday.  Their  proceedings  are  fairly  reported  in  this 
paper.  The  citizens  and  tax-pavers  of  the  city  should  give  attention  to  the 
business. 

We  have  had  considerable  experience  in  observing  the  movements  of  pub- 
lic officials  in  the  time  of  barefaced  performances,  but  for  a  brazen  and  un- 
blushing outrage  this  exceeds  any  thing  and  every  thing  that  has  been  brought 
to  our  attention.  Unquestionably  it  is  not  only  sufficient  to  arouse  public 
attention,  but  to  excite  earnest  indignation. 

It  is  not  so  much  the  fact  that  three  men  composing  the  majority  of  the 
Board  of  Public  Improvements,  in  defiance  of  the  minority  and  of  public 
sentiment,  should  award  such  a  contract,  but  that:  men  so  regardless  of  com- 
mon decency  should  have  been  placed  in  a  position  to  control  the  great  bus- 
iness interests  of  the  city  of  Cincinnati. 

It  will  be  recollected  that  Bentley  Matthews,  a  leading  Democrat,  asked 
the  Board  of  Public  improvements  to  transfer  the  Queen  City  natural  gas 
ordinance  to  a  new  company  that  he  repYesented.  The  price  in  the  original 
ordinance  was  fifteen  cents  per  thousand  cubic  feet;  or  that  failing,  the  same 
price  was  to  be  allowed  for  artificial  fuel  gas.  This  contract  having  failed,  it 
is  now  proposed  to  revive  the  ordinance,  changing  the  price  from  fifteen  to 
fifty  cents  per  thousand  cubic  feet,  and  this  is  rushed  through  the  Board  of 
Public  Improvements  by  the  "six  clean  hands,"  under  the  lead  of  Mr.  Reem- 
elin, the  President  of  the  organization.  It  was  expected  to  rush  it  through 
Council  in  the  same  way,  but  that  did  not  succeed. 

The  delay  brought  another  proposition  from  Mr.  C.  W.  Baker,  another 
prominent  Democrat,  offering  to  pay  $100,000  cash  and  other  valuable  con- 
siderations for  the  same  privilege  that  was  offered  to  the  so-called  Queen  Citv 
Company  for  nothing.  This,  as  will  be  seen,  was  rejected  yesterdav  bv  the 
"  six  clean  hands.''  Is  not  this  sufficient  to  make  the  blood  boil  in  the  veins 
of  honest  citizens,  whether  they  be  Democrats,  Republicans,  or  Mugwumps? 
Is  this  sort  of  thing  to  be  tolerated  in  Cincinnati? 

The  people  will  watch  carefully  what  the  City  Council  will  do  about  the 
matter.  That  body  is  Republican  by  a  small  majority,  but  politics  do  not 
count  when  there  is  money  about;  and  if  there  is  not  money  about  in  this  af- 
fair, what  did  Messrs.  Kerper  and  Ellison  mean  by  that  reference  to  seventeen 
thousand  dollars? 

9 


130 


And  right  here  we  desire  to  ask  what  the  Committee  of  One  Hundred  is 
about  in,  this  connection  ?  Is  it  dead,  or  is  it  asleep  ?  Surely  Kerper  and  El- 
lison would,  if  asked,  tell  them  about  that  seventeen  thousand  dollars. 

— Editorial,  Commercial  Gazelle,  September  3d. 

THE  PUBLIC  BE  DAMNED. 

Not  more  impudent  and  shameless  could  Vanderbilt's  maxim,  "The  public 
be  damned/'  have  been  put  in  force,  than  was  done  yesterday  by  Messrs. 
Reemelin,  Donham,  and  Montgomery,  the  Democratic  majority  of  the  B.  P. 
I.,  in  regard  to  the  offer  of  the  Fuel  Gas  Company.  Though  this  company 
offered  the  city  $100,000  cash,  and  two  per  cent,  etc.,  this  clean-handed  trio 
not  alone  refused  to  listen  to  argument,  but  stuck  to  the  resolution  to  recom- 
mend to  Council  the  prolongation  of  the  franchise  of  the  Queen  City  Naturul 
Gas  Company,  and  the  raising  of  the  price  for  gas  from  15  to  50  cents  per 
1,000  cubic  feet,  without  giving  the  city  the  least  remuneration.  Could  a  worse 
case  of  black  treason  to  the  city  and  its  interests  be  possible  than  was  per- 
petrated by  these  members  of  the  most  important  city  department,  whose  first 
and  highest  duty  it  should  have  been  to  guard  the  interests  of  the  city  and 
citizens  ?  — Editorial,  Freic  Press,  September  3d, 

THE  FUEL  GAS  QUESTION. 

There  is  no  longer  any  question  that  the  Board  of  Public  Improvements 
seriously  erred  in  attempting  to  galvanize  into  life  the  old  and  defunct  fran- 
chise which  a  coterie  of  Republican  politicians  worked  through  the  Board  01 
Public  Affairs  under  the  pretense  that  they  were  about  to  furnish  an  un- 
limited supply  of  natural  gas  to  our  citizens,  but  which  was  exploded  through 
the  insertion  of  a  very  thoughtful  and  judicious  amendment  that  required 
them  to  lay  a  main  from  the  gas  fields  before  entering  upon  the  streets. 

It  has  since  been  developed  that  this  was  a  most  iniquitous  scheme  to  ob- 
tain a  merchantable  opposition  franchise  for  a  new  and  competing  gas  com- 
pany, to  be  peddled  around  the  Eastern  market;  and  that  the  insertion  01 
this  amendment  alone  saved  our  newly -paved  streets  from  being  ripped  up 
from  stem  to  stern,  under  circumstances  of  misrepresentation  and  fraud  such 
as  finds  no  parallel  in  municipal  legislation. 

The  grant  made  fully  authorized  the  distribution  of  natural  gas,  and  our 
citizens  would  have  gladly  welcomed  Its  advent;  but  the}'  are  not  prepared  to 
indorse  the  granting  of  any  franchise  which,  on  its  face,  bears  evidence  of 
fraudulent  intent,  or  to  be  used  for  the  purpose  of  black-mailing  existing  cor- 
porations. Nor  will  public  sentiment  indorse  any  action,  upon  any  subject, 
which  carries  with  it  a  refusal  upon  the  part  of  those  in  authority  to  permit 
the  fullest  possible  discussion  by  those  interested  in  the  subject.  The  whole 
matter  is  becoming  a  stench  in  the  nostrils  of  our  people,  and  the  sooner  the 
Committee  on  Light  buries  it  out  of  sight  the  better  it  will  be  for  all  con- 
cerned. — Enquirer  Editorial,  September  ^th 


181 


TRYING  TO  SERVE  GOD  AND  MAMMON. 

The  opinion  has  become  fixed  in  this  community  that  Mr.  Reemelin,  the  Presi- 
dent of  the  Board  of  Public  Improvements,  assisted  by  Messrs.  Montgomery 
and  Donham,  is  trying  to  serve  God  and  Mammon.  To  adopt  another  figure, 
thev  are  attempting  the  difficult  task  of  riding  two  horses  going  in  opposite 
directions.  Necessarily  the  strain  to  their  rigging  is  very  great.  It  is  to  be 
expected,  therefore,  that  they  will  occasionally  lapse  into  some  indiscreet,  give- 
away remark  such  as  Mr.  Reemelin  made  use  of  a  few  days  ago,  when  he  re- 
ferred to  the  Queen  City  Gas  Company  as  "  my  side."  This  was  the  remark 
which  tended  to  confirm  the  suspicion  that  he  was  striving  to  serve  at  the 
same  time  Cincinnati  and  a  company  which  is  known  to  be  unalterably  hostile 
to  every  possible  Cincinnati  interest.  His  and  his  companions'  actions  on 
Tuesday  finally  confirmed  the  confirmation.  It  is  as  impossible  for  them  to 
be  friendly  to  this  Queen  City  gas  ordinance,  and  at  the  same  time  loyal  to 
the  interests  of  the  city  which  they  pretend  to  represent,  as  it  would  be  to 
safely  perform  the  equestrian  act  referred  to  a  moment  ago,  or  as  it  is  to  faith- 
fully serve  two  masters.  To  be  for  this  sweating  ordinance,  is  to  be  against 
Cincinnati.    The  lines  in  this  particular  are  clearly  drawn. 

— Editorial,  Times-Star,  September  \th. 


FUEL  GAS. 

The  umbilical  cord  between  the  six  hands  of  the  B.  P.  I.  and  the  thirty-one 
members  of  Council  was  clearly  defined  in  President  Reemelin's  remarks  be- 
fore the  Board  on  Tuesday.  He  defined  the  plan  by  having  Member  Mont- 
gomery present  the  resolution  rejecting  the  Fuel  Gas  Company's  ordinance, 
and  authorizing  the  agreement  with  the  Committee  of  Council.  It  is  agreed 
that  Council  shall  amend  the  Queen  City  ordinance  by  reducing  the  price  per 
thousand  feet  for  gas.  This  being  done,  the  "  six  hands  "  will  be  raised  and 
declared  clean  by  showing  that  the  reduction  secured  is  better  than  the  bonus 
offered  by  the  Fuel  Gas  Company.  The  public,  however,  regard  the  whole 
matter  as  a  scheme  to  secure  the  boodle  from  the  boodlers,  and  will  demand, 
before  a  grant  of  this  magnitude  is  given  away,  that  the  suggestion  of  Mr. 
Kerper  for  general  ordinance  shall  be  carried  out.  The  people  will  look  to 
Mayor  Mosby  to  block  the  way  of  the  boodlers  before  it  reaches  the  B.  P.  I. 

— Editorial,  Commercial-Gazette.  September  \th. 


CLEAN  HANDED  TRIO. 

Even  the  Enquirer  is  getting  scared  by  the  universal  and  deep-rooted  indig- 
nation of  our  citizens,  due  to  the  shameful  and  ruinous  conduct  of  Messrs. 
Reemelin,  Donham,  and  Montgomery,  of  the  Board  of  Public  Improvements, 


132 


in  the  gas  question.  It  sees  the  storm-clouds  gather  over  the  Democratic 
party,  hringing  destruction  to  the  latter  at  the  coming  election. 

If  possible,  it  would  like  to  save  its  party  from  this  fate,  and  sounds  the 
alarm  of  retreat.  It  admonishes  Messrs.  Reemclin,  Donham,  and  Montgomery, 
to  wash  those  clean  hands  of  the  fraudulent  job  of  the  Queen  Citv  Natural 
Gas  Company,  which  has  given  to  our  city  an  already  unbearable  ordor,  while 
it  is  yet  time.  That  time,  though,  is  long  since  passed.  Messrs.  Reemelin, 
Donham,  and  Montgomery  gave  themselves  irreparably,  body  and  soul,  to  the 
gas  jobbers  of  the  Queen  City  Gas  Co.,  and  the  judgment  of  the  citizens  of 
Cincinnati,  in  regard  to  the  misrule  above  mentioned,  clean  handed  trio,  and 
the  present  Democratic  mismanagement  in  general,  can  not  be  changed. 

Editorial,  Frcic-Prcssc,  Sept.  5th. 


MATTHEWS  vs.  BAKER. 

In  the  spirited  colloquy  yesterday  afternoon  between  Mr.  Bentley  Matthews, 
who  represents  the  Queen  City  Natural  Gas  and  Fuel  Companv,  and  Mr.  Chas. 
W.  Baker,  who  represents  the  Fuel  Gas  Company,  the  latter  turned  on  the 
former,  with  a  volley  of  questions  as  to  who  were  behind  the  Queen  City  Com- 
pany, where  they  came  from,  etc.  The  answers  were  unsatisfactory,  for  the 
very  important  reason  that  the  men  back  of  the  Queen  City  are  much  like 
the  wind,  of  which  it  is  said  it  "  bloweth  where  it  listeth,  and  thou  hearest 
the  sound  thereof,  but  canst  not  tell  whence  it  cometh  and  whither  it  goeth." 
The  Queen  City  backers  are  keeping  out  of  sight.  The  sound  of  them  is 
heard  when  their  legal  champion  follows  some  new  instructions,  but  nobody 
knows  whence  come  those  instructions.  Their  origin  is  as  much  a  secret  to 
the  public  -as  was  the  origin  of  the  wind  to  the  author  of  the  passage  just 
quoted.  If  their  intentions  were  honorable,  if  they  really  proposed  an  at- 
tempt to  supply  this  city  with  fuel  gas,  they  would  come  out  of  their  obscurity, 
take  off  their  masks,  and  announce  their  names.  The  "gum-shoe  "  hunt  they 
are  making  for  the  extension  of  a  valuable  franchise  is  not  at  all  likelv  to  in- 
spire the  public  with  confidence.  — Times-Star  Editorial,  Sept.  ytli. 

AN  OUTRAGE  OF  THE  COUNCIL. 

What,  in  truth,  we  never  thought  possible,  is  to-day  a  fact.  Council  passed, 
in  yesterday's  extra  session,  the  Queen  City  gas  job  to  its  engrossment. 

It  is  true  it  threw  over  it  a  cloak,  a  very  thin  one,  of  respectability  and  vir- 
tue, but  its  character  has  not  been  changed  by  it  in  the  least.  This  cloak  con- 
sists of  two  amendments,  one  of  which  stipulates  the  heating  power  of  the  gas 
to  be  furnished,  the  other  provides  that  the  company  pay  the  city  $100,000 
cash  and  two  per  cent  of  the  income  from  the  franchise.  These  are  two  con- 
cessions they  made  to  public  opinion,  and  the  knowledge  that  they  could  not 
get  the  charter  otherwise  at  all.    But  this  is  not  by  far  sufficient. 

For  those  members  of  council  who  are  talked  into  voting  for  this,  though 


133 


amended,  gas  job,  no  excuse  is  possible.  They  made  tbemselves  unworthy  of 
the  confidence  the  voters  placed  in  them,  and  identified  thejnselvcs  with  a 
transaction  which  brings  to  them  every  thing — except  honor. 

Their  behavior  is  still  more  scandalous,  as  their  Committee  on  Light,  in  its 
majority  report,  showed  them  the  way  to  act.  Of  course,  party  politics  have 
also  much  to  do  with  the  squeezing  through  of  this  measure.  At  first  favored 
and  passed  by  the  ,k  clean-handed  "  Democratic  trio,  Reemelin,  Donham,  and 
Montgomery,  of  the  Board  of  Public  Improvements,  it  found  also  acceptance 
in  council  by  a  majority,  consisting,  for  the  most  part,  of  Democrats.  It  is, 
therefore,  a  Democratic  boodle  story,  in  which  the  only  question  at  issue  was 
the  filling  of  pockets  of  Democratic  boodlers  and  the  Democratic  campaign 
fund.  The  worse,  therefore,  that  some  Republican  members  lent  their  votes 
to  the  passage  of  the  ordinance.     — Editorial,  Freie  Press,  September  loth. 


THE  OLD  SWINDLE. 

The  Queen  City  Natural  Gas  and  Fuel  Company  has  felt  the  power  of  pub- 
lic opinion,  and  therefore  did  not  dare  to  push  its  measure  through  the  City 
Council  without  amending  it,  nor  would  the  members  of  Council  have  had  the 
courage  to  vote  for  the  ordinance  which  throws  away  a  valuable  privilege 
without  an  amendment  which  seemingly  makes  it  more  palatable.  The  fear 
of  the  people  was  too  strong  upon  them.  The  public  indignation  had  to  be 
quieted,  and  naked  corruption  had  to  be  cloaked.  Hence  the  company  agreed 
to  pay  the  city  $100,000  and  two  per  cent  of  the  gross  receipts.  But,  if  the 
citizens  imagine  to  see  the  $100,000  in  the  public  coffers,  they  are  grossly  de- 
ceived. The  fact  of  the  matter  is  that  the  public  are  to  be  fleeced,  and  thor- 
oughly fleeced,  if  the  ordinance  passes  even  'in  its  amended  form. 

The  company  obligates  itself  to  pay  $100,000,  but  when?  After  the  gas 
works  are  in  operation.  The  new  ordinance  is  even  more  favorable  to  the 
company  than  the  old  one.  Under  the  old  ordinance,  the  franchise  was  not  to 
take  effect  until  the  gas  pipes  are  laid.  This  precaution  has  been  omitted 
from  the  new  ordinance.  The  company,  therefore,  receives  a  valuable  fran- 
chise without  offering  the  least  guarantee  that  they  will  ever  perform  their 
part  of  the  contract.  The  company  is  at  liberty  to  go  peddling  with  the  fran- 
chise for  another  year,  and  if  they  should  find  no  purchaser,  they  simply  forfeit 
the  franchise,  and  the  citizens  get  nothing. 

But,  even  taking  the  most  favorable  case,  that  the  company  does  pav  the 
money,  and  dec,  EE)  EEs  pipes,  the  people  are  apt  to  be  bled  on  the  price. 
For  the  bargain  of  fifty  cents  per  thousand  cubic  feet  is  onlv  binding  for  a 
year.  There  is  nothing  to  prevent  the  company  from  raising  the  price  in  the 
second  year,  and  the  influence  of  corporations  renders  it  only  too  possible  that 
they  will  be  enabled  to  raise  the  price.  Moreover,  the  possibility  of  selling 
the  franchise  to  the  present  gas  company  is  also  to  be  considered,  so  that,  in 
whichever  light  the  citizens  may  look  at  the  matter,  they  are  sure  to  be 
duped. 

The  only  redeeming  feature  in  this  whole  disgusting  transaction  is  the 
noble  stand  taken  by  the  majority  of  the  German  members  of  the  Council, 


134 


who  voted  against  that  fraudulent  scheme.  Of  course,  men  like  Abbihl,  Spie- 
gel, and  Witzenbacher,  who  have  proven  their  integrity  on  more  than  one 
occasion,  are  not  apt  to  betray  the  public  interest  in  this  instance.  We  think 
it  worth  while  for  our  readers  to  remember  the  names  of  the  men  who  have 
placed  themselves  on  the  sideo  f  honest  v.  They  are:  Abbihl,  Beard,  Berger, 
Dienst,  Finke,  Ilarig,  Heyn,  Kaufman,  King,  Kistner,  Legner,  Love,  Ludlow, 
McDonough  (Thos.),  Schath,  Schlotman,  Spiegel,  Winkler,  Witzenbacher, 
and  Wuest. 

We  will,  for  the  present,  say  nothing  of  the  Germans  who  voted  for  the 
fraudulent  ordinance,  presuming,  as  we  do,  that  they  did  not  fully  realize  its 
scope  and  penetrate  the  dishonest  design.  But,  now  that  the  scheme  is  re- 
vealed to  them,  we  have  reason  to  expect  that  they  will  change  their  vote; 
otherwise,  we  will  not  fail  to  call  the  attention  of  the  people  to  their  action. 
It  is  high  time  that  the  fleecing  of  the  people  by  the  corporation  should  cease 
at  last,  and  every  member  of  the  Council  who  lends  his  aid  to  the  great  in- 
iquity ought  to  have  the  stigma  of  public  contempt  affixed  upon  him. 

—Editorial,  Volksblatt,  September  wth. 


THE  PENDING  GAS  ORDINANCE. 

The  more  closely  we  read  between  the  lines  the  more  clearly  appears  the 
fact  that  there  was  a  sinister  purpose  in  the  inexplicable  conduct  of  the  ''six 
clean  hands  "  in  rushing  through  the  Board  of  Public  Improvements,  without 
giving  time  for  a  moment's  considerations  so-called  "fuel  gas"  franchise, 
which  there  no  longer  appears  to  be  any  doubt,  is  a  scheme  for  obtaining  a 
grant  to  be  used  as  a  ,k  bleeder.*' 

The  gentlemen  through  whose  votes  the  ordinance  was  engrossed  are  not 
the  members  who  are  generally  recognized  as  having  the  best  interests  of  the 
city  at  heart,  and  we  hope  that  upon  reflection  they  will  reconsider  their 
action  and  relegate  the  scheme  to  oblivion. 

If  there  are  any  parties  who  desire  to  confer  upon  this  city  the  boon  of  a 
cheap  "  fuel  gas."  they  should  make  no  gum-shoe  hunt,  but,  like  men  engaged 
in  a  legitimate  business,  step  to  the  front  and  define  their  purpose. 

The  suggested  amendment  requiring  the  payment  of  $100,000  and  two  per 
cent  on  the  gross  income,  which  was  sprung  at  the  last  moment  as  a  sort  of 
coup  d'etat,  should  give  no  weight  to  the  proposition,  for  the  simple  reason 
that  the  two  per  cent  on  the  gross  income  on  even  a  prosperous  manufactur- 
ing business  is  a  small  matter,  but  the  promise  of  a  concern  that  has  neither 
capital  nor  gross  income  is  nothing.  The  $100,000  is,  by  the  terms  of  the 
amendment,  not  to  be  paid  into  the  treasury  until  they  are  ready  to  "go 
into  operation." 

If  they  never  "go  into  operation."  the  city  gets  nothing,  but  in  the  mean- 
time, the  city  has,  without  consideration,  given  a  few  adventurers  a  "raiding 
instrument"  of  value,  and  one  year's  time  within  which  to  find  a  purchaser. 

Members  of  Council  who  are  actuated  by  motives  of  personal  interest  will 


135 


undoubtedly  vote  for  the  scheme,  but  those  who  have  the  city's  interest  at 
heart  should  unquestionably  vote  for  a  postponement. 

— Editorial,  Commercial- Gazette,  September  villi. 


THE  PENDING  GAS  ORDINANCE. 

The  measure  now  before  Council,  and  which  will  come  up  for  final  action 
this  afternoon,  is  one  of  more  than  ordinary  interest  to  our  citizens. 

The  public  is  firmly  impressed  with  the  idea  that  the  whole  scheme  is  of  a 
character  that  will  not  warrant  the  approval  of  those  who  have  the  best  inter- 
ests of  the  city  at  heart. 

The  proffer  of  $100,000  bonus  and  two  per  cent  on  the  gross  income  carries 
with  the  scheme  no  additional  weight,  as  any  such  sum  would  be  but  a  trifling 
consideration  for  the  destruction  of  granite  and  asphalt  streets  for  which  we 
have  just  paid  over  $4,000,000,  and  even  this  trifling  sum  is  not  to  be  paid  to 
the  city  until  they  are  ready  to  go  into  operation.  Will  that  time  ever  come  ? 
And  if  it  never  does  come,  wherein  lies  the  virtue  of  two  per  cent  on  the 
gross  income  of  a  company  that  has  none  ? 

Thus  would  the  city  grant  a  franchise  of  inestimable  value  for  a  mess  of 
pottage,  with  the  privilege  of  one  year  within  which  to  negotiate  its  sale  to  a 
gang  of  Eastern  people  who  have  reduced  to  a  science  the  raiding  of  legiti- 
mate enterprises.  The  duty  of  Council  is  plain;  it  should  be  at  once  rele- 
gated to  oblivion  by  a  unanimous  vote. 

— Enquirer  Editorial,  September  \2th. 


THE  INIQUITOUS. 

The  iniquitous  Queen  City  gas  ordinance  was  knocked  silly  by  Council  yes- 
terday, and  the  public  rejoices.  It  may  be  unseemly  to  laugh  when  calamity 
cometh,  but  President  Reemelin's  pretty  bantam  did  not  deserve  to  live,  for  it 
was  not  an  honest  bird,  and  was  only  pretending  to  fight  the  Cincinnati  Gas 
Light  and  Coke  Co.  Of  course,  the  death  of  the  little  blusterer  wins  the 
fight  for  General  Hickenlooper,  but  the  victory  in  this  case  is  also  the  people's 
victory.  They  have  not  given  a  valuable  franchise  away  to  parties  who  would 
have  deviled  the  Cincinnati  Gas  Light  and  Coke  Company  into  purchasing 
this  franchise,  for  which  the  consumer  would  have  ultimately  paid  in  a  larger 
gas  bill.  When  General  Hickenlooper  is  met  by  an  honest  opponent,  who 
means  to  give  the  city  good  gas  at  less  than  $1.15,  such  company  should 
be  allowed  to  enter  the  lists.  — Editorial,  Post,  Sept.  i$tk. 

THE  SWEATING  ORDINANCE. 

The  men  who  yesterday  stood  by  right  and  decency,  by  voting  down  the  Queen 
City  Gas  Company's  sweating  ordinance,  deserve  the  thanks  of  the  people  of 


136 


this  community.  They  were  Messrs.  Abbihl,  Beard,  Berger,  Dewald,  Dienst, 
Dowd,  Finke,  Harig,  Heyn,  Hoernschemeyer,  Kaufman,  King,  Kistner,  Leg- 
ner,  Ludlow,  Macarthy,  McDonough  (Thos.),  Paul,  Schlotman,  Schueler, 
Spiegel,  Westerkamp,  Wilson,  Winkler,  Witzenbacher,  WTuest,  Yoast.  They 
could  see  through  the  plot  of  the  company  pressing  the  ordinance,  that  it  did 
not  mean  either  a  cheaper  illuminant  or  cheap  fuel  for  the  people  of  this 
city,  but  a  raid,  pure  and  simple,  on  a  corporation,  and  so  they  first  jammed 
the  proposition  under  the  table,  and  then  clinched  the  argument  by  inconti- 
nently kicking  the  ordinance  out  the  window.  The  Queen  City  Gas  Com- 
pany will  have  to  put  on  a  new  suit  of  clothes  before  it  is  again  bustled  up 
into  the  hall  of  our  city  fathers  with  both  palms  extended. 

Times-Star  Editorial,  Sept.  l^tk. 


THE  GOOD  CAUSE  VICTORIOUS. 

Council  made  good  yesterday  the  grave  mistake  it  made  Tuesday  by  passing 
the  Queen  City.Natural  Gas  and  Fuel  Co.  ordinance;  it  killed  the  ordinance  by 
a  vote  of  32  against  21,  and  voted  down  the  motion  to  reconsider  by  a  vote  of 
37  against  16,  sealing  its  fate  forever.  Council  has  not  alone  done  its  duty 
and  honored  itself,  but  has  also  done  a  great  service  to  the  city  and  its  in- 
habitants. The  treasury  of  the  first,  and  the  pockets  of  the  latter,  would  have 
had  to  suffer  most  by  passing  the  ordinance  in  question.  Why,  it  will  not  be 
necessary  for  us  again  to  explain;  this  has  been  done  during  the  last  weeks 
explicitly  and  exhaustively,  we  would  therefore  be  obliged  to  bring  stale  news. 
To  the  press  is  due  all  the  merit  of  having  exposed  the  frauds  of  the  Queen 
City  Gas  ordinance  in  all  its  nakedness,  so  that  the  eyes  of  the  public  were 
drawn  to  it,  and  the  squeezing  through  in  Council  was  frustrated.  The 
names  of  those  Councilmen  who  by  their  votes  dug  the  grave  for  this  scandal- 
ous ordinance  are  Abbihl,  Beard,  Berger,  Dewald,  Deinst,  Dowd,  Finke,  Harig. 
Heyn,  Hoernschemeyer,  Kaufman.  Kistner  King,  Legner,  Ludlow,  McCarty, 
McDonough,  Paul,  Schlotman,  Schueler,  Spiegel,  Westerkamp,  Wilson, 
Winkler,  Witzenbacher,  Wuest,  and  Yost. 


After  the  final  defeat  of  the  Queen  City  Gas  Job  in  Council  the  "six 
clean  hands  "  of  the  B.  P.  I.  will  not  find  it  difficult  to  keep  their  hands  clean. 


The  "clean  handed"  trio  of  the  B.  P.  I.  received  yesterday  from  Council 
a  sound  and  wholesome  lesson,  viz:  That  said  trio,  when  it  can  do  as  it 
pleases  in  its  own  Board,  has  nothing  to  say  in  Council. 

The  Queen  City  Natural  Gac.and  Fuel  Co.  job  received  in  yesterday's 
Council  meeting  its  deathstroke.  It  died  hard,  but  there  was  no  salvation 
for  it.  It  could  not  exist  in  the  face  of  public  opinion,  and  the  feeling  of 
justice  and  duty  of  the  majority  of  the  Councilmen. 

- — Editorial,  Frrie-Press.  Sept.  i^t/i. 


137 


LEGISLATIVE  ACTION. 

In  view  of  the  fact  that  the  hasty,  ill-advised,  and  interested  action 
upon  the  part  of  the  three  members  of  the  Board  of  Public  Improve- 
ments, caused  not  only  the  citizens  of  this  city  to  lose  confidence  in 
their  integrity,  but  induced  the  Governor  of  the  state  to  take  action 
finally  resulting  in  the  abolition  of  the  Board,  the  following  brief  re- 
sume of  that  which  followed  may  prove  interesting. 

But  a  fortnight  after  the  defeat  of  the  ordinance,  rumors  were  rife 
that  the  Governor  had  demanded  the  resignation  of  Messrs.  Reeme- 
lin,  Montgomery  and  Donham,  the  Commercial  Gazette  of  Septem- 
ber 27th  saying  : 

"  Governor  Campbell  is  seriously  contemplating  making  a  demand  that  a 
certain  member,  and  probably  three  members,  of  the  Board  of  Public  Im- 
provements shall  resign  at  once. 

"  The  Governor's  purpose  of  demanding  the  resignation  of  Messrs,  Reeme- 
lin.  Donham  and  Montgomery,  is  not  the  result  of  personal  annoyance,  or  im- 
patience at  the  lack  of  good  sense  on  the  part  of  one  or  more  members. 

••  It  is  the  integrity  of  the  members  which  is  involved." 

The  Governor,  upon  being  further  interviewed  upon  this  subject, 
said : 


"  I  havp  no  power  to  remove  the  members  of  that  Board.  Against  my  pro- 
test, the  Legislature  gave  me  the  power  of  appointment,  but  not  the  power  of 
removal.  This  I  ought  to  have,  and  without  the  necessity  of  specifving  a 
cause. 

••If  I  find  that  an  appointee  of  mine  is  dishonest,  and  I  can  not  remove,  I 
would  be  justified  in  using  all  my  influence  to  compel  him  to  resign;  and  I 
would  certainly  try  to  drive  him  from  office,  regardless  of  the  politics  of  the 
man  involved — and  this  I  would  do  irrespective  of  consequences." 

Such  rumor,  it  is  now  known,  was  based  on  the  following  letter 
transmitted  by  the  Governor  several  days  previous : 


"Columbus,  O.,  September  24,  1S00. 

To  Hox.  Louis  Reemelix, 

Cine  in  nati. 

My  Dear  Sir— I  am  told  that  you  have  expressed  a  willingness  to  resign 
your  membership  on  the  Board  of  Public  Improvements  in  the  city  of  Cincin- 


138 


hati,  provided  it  were  my  desire  that  you  should  do  so.  I  write  for  the  pur- 
pose of  advising  you  that  such  action  would  meet  my  approval.  A  prompt 
reply  will  be  appreciated  by  Yours,  respectfully, 

James  E.  Campbell." 

To  this  letter  Mr.  Reemelin  replied  as  follows: 

"Cincinnati,  O.,  September  26,  1890. 

To  Hon.  James  E.  Campbell, 

Columbus,  0. 

Dear  Sir — Your  letter  of  24th  inst.  is  before  me.  I  am  surprised  at  its 
contents;  the  more  so  for  the  reason  that  I  have  not  had  any  intimation  from 
you  but  that  my  course  in  the  Board  of  Public  Improvements  of  Cincinnati 
met  with  your  unqualified  approval,  as  well  as  that  of  all  fair  minded  people 
of  this  city.  In  fact,  every  act  of  mine  has  been  in  the  interest  of  the  people 
whom  you  appointed  me  to  serve.  Before,  therefore,  giving  your  letter  any 
further  answer,  I  respectfully  request  the  name  of  your  informant,  and  the 
cause  for  your  readiness  to  approve  my  resignation  as  a  member  of  said 
Board.  Yours,  respectfully, 

Louis  Reemelin." 

The  following  telegraphic  correspondence  indicates  that  the  Gov- 
ernor lost  no  time  in  acting  : 

'•Cincinnati.  September  27,  1890. 

To  Governor  James  Campbell: 

The  evening  papers  here  publish  what  purports  to  be  an  official  statement 
from  you,  in  which  you  charge  crookedness  in  the  Board  of  Public  Improve- 
ments. 

Do  von  charge  me  with  any  crookedness  ? 

Answer  at  once.  Louis  Reemelin." 

To  this  the  Governor  at  once  replied : 

"Columbus,  O.,  September  27,  1890. 

Hon.  Louis  Reemelin  : 

Replying  to  your  telegram,  wherein  you  peremptorily  demand  to  know  if 
I  charge  you  with  what  you  term  crookedness,  I  beg  to  say  that  I  have  not 
charged  you  with  any  thing;  but  7  believe  you  to  be  dis/ionest,  and  that  opin- 
ion is  concurred  in  by  every  citizen  of  Cincinnati  whom  I  have  seen,  or  from 
whom  I  have  heard  within  the  past  month. 

Whenever  I  have  official  charges  to  make  against  you  or  the  Board  of  Pub- 
lic Improvements  in  the  city  of  Cincinnati,  I  will  select  my  own  time  and 
place,  and  my  own  medium  of  communicating  the  same  to  the  public. 

In  the  meantime,  I  demand  j'our  resignation  from  said  Board  to  be  placed 
in  my  hands  before  noon  of  Monday  next.         James  E.  Campbell, 

Governor  of  Ohio. 


]  39 


Editorial,  Commercial  Gazette,  September  28,  1890: 

"  It  is  to  be  hoped  that  Mr.  Reemelin,  who  has  received  Governor  Camp- 
bell's request  for  his  immediate  resignation,  will  at  once  hand  it  in,  and  not 
force  the  matter  into  the  Probate  Court,  and  continue  a  scandal  that  can  only 
result  in  deepening  the  dark  color  of  the  stain  with  which  his  reputation  is  al- 
ready smirched. 

•  Governor  Campbell  has  been  exceedingly  unfortunate  in  his  appointments 
to  the  important  Board  of  Public  Improvements.  As  matters  have  turned,  he 
could  hardlv  have  made  worse  selections,  and  the  present  Board  has  been  a 
public  scandal  from  the  beginning — especially  so  in  the  person  of  its  Presi- 
dent. 

••  The  six  dirty  hands  in  that  Board,  bedaubed  with  jobbery  and  all  sorts  of 
derelictions,  public  and  private,  should  be  folded  and  clean  hands  substituted. 

"As  to  Donham  and  Montgomery,  many  people  credit  them  with  honesty 
of  purpose,  but  deny  their  ability  to  fill  the  offices  to  which  they  have  been  as- 
signed. 

"There  is  not  that  sort  of  feeling  entertained  toward  Mr.  Reemelin." 

On  the  6th  of  October,  Governor  Campbell  issued  his  proclamation 
calling  a  special  session  of  the  Legislature,  to  convene  at  the  State 
House,  in  Columbus,  at  10  o'clock  a.  m.,  October  14th.  And  on  the 
date  named  he  transmitted  to  the  Legislature  his  message,  from  which 
the  following  extract  is  submitted : 

"  Executive  Chamber, 

Columbus,  O.,  October  14,  1890. 

To  the  General  Assembly: 

5|C  ^{c  jfc  5^  ^{C 

The  Board  of  Public  Improvements  thus  created  was  clothed  with  sub- 
stantially the  same  powers  as  its  predecessors.  The  only  improvement  in  its 
construction  was  a  provision  that  the  members,  although  originally  appointed 
by  the  Governor,  should  be  subsequently  elected  by  the  people.  This  advan- 
tage was  offset  by  the  failure  to  empower  the  Governor  to  remove  his  ap- 
pointees should  they  prove  to  be  inefficient  or  dishonest.  A  change  for  the 
worse  was  a  provision  that  three  members  instead  of  four  could  transact 
business,  thus  enabling  them  to  unite  and  control  public  affairs.  The  present 
Board  entered  upon  its  duties  under  favorable  auspices.  Although  it  was 
soon  subjected  to  criticism — much  of  it  unjust — for  its  management  of  the 
water-works.  It  was,  in  the  main,  a  well-meaning  and  honestly  conducted 
body.  Later,  however,  it  retrograded  very  rapidly.  Certain  members  voted 
to  grant  valuable  franchises  in  such  unseemly  haste,  and  so  clearly  in  viola- 
tion of  public  interest,  that  the  people  began  to  suspect  their  integrity.  These 
suspicions  have  since  become  more  firmly  fixed.  As  early  as  September  4th, 
a  leading  newspaper  of  that  city,  represesenting  the  political  party  to  which 
a  majority  of  the  Board  adhered,  when  speaking  of  an  important  franchise 


140 


which  had  been  gratuitously  granted,  although  parties  stood  ready  £o  pay  the- 
city  handsomely  for  such  a  franchise,  said  that  it  bore  "Evidence  of  fraudu- 
lent intent  to  be  used  for  the  purpose  of  blackmailing  existing  corporations? 
Again,  on  Septemoer  12th,  the  same  newspaper  said:  'Thus  -would  the  city 
grant  a  franchise  of  inestimable  value  for  a  mess  of  pottage,  xvith  the  priv- 
ilege of  one  year  in  which  to  negotiate  its  sale  to  a  gang  of  Eastern  people 
zvho  have  reduced  to  a  science  the  raiding  of  legitimate  enterprises!1 

The  newspapers  of  opposite  political  views  have  been  equally  unsparing 
and  more  continuous  in  their  denunciations.  Popular  confidence  in  the  Board 
is  gone,  although,  through  persons  interested  in  its  enormous  patronage,  an 
attempt  may  be  made  to  deceive  the  General  Assembly.  The  people  of 
Cincinnati,  who  are  not  personally  interested  in  the  Board,  or  its  employes, 
are  practically  unanimous  in  the  belief  that  some  of  its  members  were  par- 
ties to  corrupt  propositions  which  have  been  made  to  persons  having  busi- 
ness before  the  Board.  Doubtless  members  and  '-go-betweens"  will  deny 
the  truth  of  these  reports,  but,  whether  they  be  true  or  not,  these  members 
are  so  deeply  involved,  and  so  universally  impugned,  that  the  public  give 
credence  to  well  authenticated  stories  of  this  characted,  and  even  worse,  which 
are  circulated  elsewhere.  In  short,  the  people  believe,  not  without  reasonable 
cause,  that  this  Board  is  beginning  to  travel  the  path  so  long  trodden  by  other 
demoralized  governing  bodies  of  that  city." 

After  much  political  contention,  and  the  suggestion  of  many  and 
various  ways  in  which  the  Board  should  be  abolished'  and  a  new  one 
substituted,  on  the  21st  of  October  Senator  Soncrant's  bill,  providing 
for  the  abolition  of  the  existing  Board,  and  the  substitution  of  a  non- 
partisan one  to  be  appointed  by  the  Mayor,  was  introduced,  and 
passed  the  Senate  by  the  decisive  vote  of  28  to  3. 

And,  on  the  24th  of  October,  passed  the  House  by  a  vote  of  71  to 
33  ;  thus  closing  the  business  of  the  extra  session. 

Following  the  receipt  of  a  certified  copy  of  the  bill,  his  Honor 
Mayor  Mosby  selected  and  appointed  as  members  of  the  new  Board. 
of  City  Affairs,  Hon.  Thos.  G.  Smith,  Dr.  T.  W.   Graydon,  Col. 
Gustave  Tafel,  and  May  Fechheimer. 

Their  induction  into  office  was,  however,  delayed  by  the  procure- 
ment and  service  of  a  restraining  order  issued  by  the  Superior  Court, 
and  the  hearing  of  which  was  had  on  the  29th  of  October,  when  the 
demurrer  was  sustained  and  the  petition  dismissed.  The  following 
is  the  text  of  the  petition  filed : 

"The  plaintiffs  say  that  the  said  Louis  Reemelin,  Edgar  \V.  Donham  and 
Wm.  Montgomery  are  members  of  the  Board  of  Public  Improvements  of  the 
city  of  Cincinnati,  duly  appointed  and  qualified  in  pursuance  of  the  provisions 
of  the  statutes  of  the  State  of  Ohio,  under  an  act  passed  March  13,  1890,  entitled 
'An  act  to  create  and  establish  an  efficient  Board  of  Improvements  in  cities  of 
the.  first  grade  of  the  first  class,'  and  that  they  constitute  a  majority  of  said 


141 


Board;  that  said  Board  is  duly  organized  and  in  the  exercise  of  the  functions 
pertaining  to  said  office,  and  in  possession  of  its  emoluments,  records,  and 
property. 

"That,  notwithstanding  the  premises,  the  defendant,  John  B.  Mosby,  as 
Mayor  of  the  city  of  Cincinnati,  is  threatening  to,  and  will,  unless  restrained 
by  order  of  this  court,  appoint  another  Board,  claiming  to  be  vested  with 
the  same  functions  and  to  discharge  the  same  duties,  and  to  be  vested  with  all 
the  rights,  privileges  and  responsibilities  of  the  said  Board  of  Public  Improve- 
ments, assuming  the  right  so  to  do  under  and  in  pursuance  of  the  provisions 
of  an  alleged  statute  passed  by  the  General  Assembly  of  the  State  of  Ohio 
on  the  24th  day  of  October,  1890,  at  an  extra  session  of  the  Legislature,  es- 
pecially called  by  the  Governor  of  the  State  of  Ohio;  that  said  act  is  void  and 
confers  no  powers  upon  the  said  John  B.  Mosbj',  as  such  Mayor  of  the  city  ot' 
Cincinnati  to  appoint  a  Board  of  members  of  a  Board  to  supersede  your  pe- 
titioners, or  the  Board  of  Public  Improvements  of  the  city  of  Cincinnati,  in 
the  exercise  of  the  functions,  rights  and  priviliges  with  which  they  are  vested. 

"  Your  petitioners  aver  that  said  act  is  a  special  act  conferring  corporate 
powers  upon  the  city  of  Cincinnati,  and  as  such  contravenes  the  provisions  of 
section  1,  article  13,  of  the  Constitution  of  the  State  of  Ohio. 

"  Said  act  is  also  unconstitutional  in  that  it  limits  the  selection  of  the  mem- 
bers of  the  said  Board  to  the  two  leading  political  parties,  and  authorizes  the 
appointment  of  only  two  members  from  each  of  said  parties,  thereby  exclud- 
ing from  such  appointment  any  person  who  may  belong  to  any  political  party 
other  than  the  two  leading  parties.  And  also  excluding  each  of  said  leading 
political  parties  from  the  right  to  have  more  than  two  members  each  of  said 
Board,  in  violation  of  section  4  of  article  5  of  the  Constitution  of  the  State  of 
Ohio,  and  also  of  other  provisions  of  said  constitution;  that  said  act  is  uncon- 
stitutional in  many  respects,  apparent  upon  examination  of  the  same. 

"  Your  petitioners  further  say  that  the  appointment  bv  the  said  Mavor  of 
members  of  a  new  Board  as  aforesaid,  would  be  a  great  and  irreparable  injury 
to  your  petitioners  and  to  the  administration  of  the  affairs  of  the  city  of  Cin- 
cinnati, and  for  which  there  is  no  adequate  remedy  at  law;  that  such  members 
if  appointed  will  attempt  to  take  possession  of  the  offices  now  held  by  plaint- 
iffs, and  to  exercise  and  perform  the  duties  lawfully  incumbent  upon  the  plaint- 
iffs, and  they  will  endeavor  to  intrude  into  said  offices  and  sieze  upon  the  re- 
cords and  propertv  therein  situated,  and  to  take  possession  of  other  propertv 
of  the  city  of  Cincinnati  under  the  control  of  said  Board  of  Public  Improve- 
ments, and  in  every  way  to  usUrp  and  take  control  of  the  offices  now  held  and 
exercised  by  the  plaintiffs.  Plaintiffs  further  say  that  Cincinnati  is  a  city  of 
the  first  grade  of  the  first  class,  and  is  the  only  city  of  said  grade  and  class 
in  the  State  of  Ohio,  and  no  other  city  can  be  advanced  to  said  grade  or  class 
prior  to  January  1,  1891. 

"  Wherefore,  the  plaintiffs  pray  that  a  temporary  restraining  order  may  be 
granted,  restraing  the  said  John  B.  Mosby.  individually  and  as  mayor  of  the 
city  of  Cincinnati,  from  appointing  any  person  or  persons  to  act  as  members 
of  the  Board  of  City  Affairs  mentioned  in  said  alleged  act  of  October  24. 
1890,  and  from  taking  any  step  or  steps  or  exercising  any  power  under  said 
act,  and  that  upon  final  hearing  hereof  said  injunction  may  be  made  perpetual. 


142 


and  for  such  other  and  further  relief  as  the  nature  of  the  case  and  equity  may 
require." 

The  petition  is  sworn  to  by  Louis  Reemelin. 

An  appeal  was  immediately  taken  to  the  Supreme  Court  of  the 
State,  and  on  the  following  day  came  up  before  the  Supreme  Court 
on  motion  of  the  plaintiffs  in  error  for  leave  to  file  a  petition  in  error 
to  reverse  the  judgment  of  the  General  Term  of  the  Superior  Court. 

On  the  morning  of  the  13th  of  October,  the  Supreme  Court  ordered 
the  following  entry  to  be  made  : 

"Louis  Reemelin  et  al.  rs.  John  B.  Mosbv.  Motion  for  leave  to  file  a  peti- 
tion in  error  to  the  Superior  Court  of  Cincinnati.  The  petition  does  not 
make  a  case  for  injunction,  and  the  application  is  therefore  overruled." 

On  the  morning  of  November  1st,  the  Board  of  City  Affairs 
proceeded  to  take  possession  of  the  offices  in  City  Buildings. 

The  following  extract  from  the  report  of  the  Commercial  Gazette 
gives  a  brief  synopsis  of  the  incidents  connected  with  the  proceeding. 

The  members  of  the  new  Board,  accompanied  by  the  Mayor,  find- 
ing the  doors  locked,  ordered  them  broken  open,  and  proceeded  with 
business  by  electing  D.  YV.  Brown  clerk. 

Just  then  Reemelin  sailed  in  with  blood  in  his  eve.  He  curtly  said  "Good 
morning,"  but  he  did  not  bid  them  welcome.  On  the  contrary,  he  remarked 
that  they  were"  there  without  authority  ;  that  he  was  there  as  President  of  the 
Board  of  Public  Improvements,  which  proposed  to  hold  its  ground  and  meet 
as  a  Board,  as  they  would  see.  In  a  very  rough  manner  he  accused  the  Board 
of  taking  snap  judgment  and  breaking  into  the  office,  but  they  would  find 
possession  quite  another  thing. 

Mr.  Drausin  Wulsin  was  present  as  the  attorney  for  Mayor  Mosbv.  He 
advised  the  Board  to  pay  no  attention  to  Reemelin's  claim,  but  to  proceed 
with  business. 

President  Smith  asked  for  the  records.  Willie  Gerstle,  .office  clerk,  held 
the  keys.  He  was  sent  for  and  appeared.  President  Smith  requested  the 
keys  of  him.  Reemelin  advised  him  to  hold  on  to  them.  President  Smith 
expostulated,  but  it  was  useless.    The  boy  said  he  was  acting  under  orders. 

"  Yes,  sir,  he  is  acting  under  our  orders  as  B.  P.  I.;  he  is  our  employe,  and 
not  yours,  and  he  shan't  give  up  the  keys."    So  said  Reemelin. 

Again  Mr.  Smith  asked  for  the  keys  to  the  records,  but  they  were  not  forth- 
coming, and  ex-Clerk  Butterfield  refused  to  give  up  the  minute  book.  This 
estopped  the  very  thing  said  to  be  so  very  much  needed  at  this  juncture — the 
approval  of  the  pa\r-rolls,  for  the  Board  had  no  data;  it  was  without  information 
as  to  the  financial  status  of  the  knocked-out  Board,  and  could  not  put  itself  on 
record  as  approving  pay-rolls,  the  composition  of  which  it  was  in  total  ignor- 


143 


ance.  Those  pay-rolls  were  therefore  carefully  rolled  up  and  put  away  for 
future  referenc  e,  to  be  taken  up  at  any  time,  especially  as  the  City  Solicitor 
advised  this  course  under  the  circumstances. 

Mr.  Montgomery  now  came  limping  in,  looking  less  neat  in  personal  ap- 
pearance than  usual,  and  seated  himself  on  the  window-sill.  He  clung  to  his 
cigar  stump  and  looked  across  the  bridge  of  his  nose  at  the  Board.  Then  it 
was  rumored  that  Donham  was  coming.  The  rumor  proved  to  be  correct,  so 
that  at  the  usual  hour  of  meeting  of  the  knocked-out  Board — n  o'clock — the 
"  Big  Three"  were  on  hand  for  business,  or  devilment,  as  events  might  deter- 
mine. Pretty  soon  Montgomery  left  the  Board  room  and  went  to  the  office 
of  the  Board  in  the  south  end  of  the  building,  and  sat  down  with  Reemelin 
and  Donham. 

Ex -Judge  Hiram  D.  Peck  was  with  them,  and  after  a  whispered  conference 
the  "  Big  Three,"  with  Butterfield  as  Clerk,  attempted  to  hold  a  meeting  after 
the  manner  of  the  "Rump  Parliament"  of  Cromwell's  time.  Reemelin  was 
heard  to  say  that  a  voucher  would  do  just  as  well  as  any  thing  else,  and  But- 
terfield went  after  the  voucher.  The  "Big  Three"  took  off  their  hats  and 
assumed  official  airs.  President  Thomas  G.  Smith,  Dr.  Graydon,  Colonel 
Tafel,  and  Mr.  Fechheimer  came  in,  and  smelling  a  rat,  Mr.  Smith  asked 
Reemelin  if  they  were  going  to  hold  a  meeting  in  that  room.  Yes,  they  were 
going  to  hold  a  meeting  in  that  room  right  away., 

"Then,  by  authority  of  the  State  of  Ohio,  in  me  vested  as  President  of  the 
Board  of  City  Affairs,  I  forbid  it,  and  ask  of  you  gentlemen  to  desist,"  said 
Mr.  Smith. 

"  We  will  not  desist,"  replied  Reemelin. 

"  Then  I  order  you  out  of  this  room  at  once,  and  forbid  any  proceedings 
except  immediate  vacation,"  said  President  Smith. 

Mayor  Mosby  had  been  a  quiet  but  very  attentive  observer  of  the  whole 
proceedings.  He  wished  to  know  whether  they  were  going  to  obey  the  order  to 
leave  the  room.    Reemelin  asked  the  Mayor  whether  he  ordered  them  to  leave. 

The  Mayor  replied  that  they  were  ordered  to  desist  from  holding  a  meeting 
and  to  leave  the  office,  and  that  they  would  have  to  do  so.  The  Mayor  had 
said  very  little  up  to  that  point,  but  what  he  now  said  was  pregnant  with 
meaning,  for  it  was  accompanied  by  a  peculiar  glint  of  the  Mayoral  eye  that 
meant  business.  Judge  Peck  was  sitting  with  his  hat  on  taking  notes  on  a  piece 
of  paper,  occasionally  prompting  Reemelin,  and  he  asked  the  Mayor  what  he 
was  going  to  do,  and  if  he  (Peck)  understood  him  to  order  these  gentlemen  to 
leave  the  office.  Reemelin  also  wished  to  ask  the  same  question.  The  Mayor 
replied  that  he  ordered  them  nothing,  but  if  they  refused  to  obey  the  order  of 
President  Smith  they  would  have  an  opportunity  of  seeing  what  he  (the 
Mayor)  would  do. 

That  settled  it.  They  took  this  as  a  technical  resistance,  and  giving  their 
promise  not  to  make  any  further  attempts  there  to  hold  a  meeting  of  the 
"rump"  Board  of  Public  Improvements,  withdrew.  The  excited  throng  out- 
side the  counter  and  check-rail  witnessed  these  proceedings  with  absorbing  in- 
terest.   It  was  a  well-behaved  throng,  but  it  was  well  "policed  "  and  knew  it. 

Order  was  soon  restored,  and  the  Board  of  City  Affairs  returned  to  its  room 
and  soon  after  adjourned  till  Monday  morning. 


INDEX. 


Action  of  Board  of  Public  Improvements, 
Council's  preliminary  proceedings, 
Hickenlooper's  criticism,  . 
Proceedings  before  Committee  on  Ligbt. 
Gen'l  Hickenlooper's  argument — 

Review  of  Parent  Ordinance, 

Raiding  Scheme, 

Comparative  values  of  heating  gases, 
Impracticability  of  "  Fuel  Gas," 
Poisonous  character  of  such  gas. 
Competition  in  the  supply  of  gas, 
Practical  results  of  competition, 
Speculative  raids,  character  and  effect, 
Coal-gas,  the  best  fuel  gas  made, 
Whom  he  represents, 

Closing  arguments, 

Committee's  action, 

Council  Meeting, 

Final  action  of  Council, 

Opinions  of  the  Press, 

Legislative  action, 

Closing  scenes,  .  ,  . 


Lithomount 
Pamphlet 
Binders 
Gaylord  Bros.  Inc. 

Makers 
Syracuse,  N.  Y. 


